Sweden's Pyrosequencing, a genetic analysis systems manufacturer, has acquired a 94.1 per cent stake in privately held chemical synthesis concern Personal Chemistry in an all-stock transaction.
The remaining shares will be acquired by Pyrosequencing at a later date under an alternative agreement. Upon completion, the terms of the transaction will see shareholders in Personal Chemistry gain control of 40 per cent of Pyrosequencing's share capital and votes.
Pyrosequencing chairman Jeff Bork claimed that the merger "creates a world leader among biotechnology companies with a stronger customer base among both commercial and academic customers. The two companies are each world leaders in their own fields and we see great opportunities for expansion into new fields."
The merger has taken place as the two businesses look to build up critical mass and represents the first step in an ongoing process for creating value and restructuring at the firm, said Personal Chemistry's chairman, Ove Mattson.
During 2002, the companies had combined pro-forma revenues of around SK 202 million (€22m). Pyrosequencing reported a net loss of SK 173 million while Personal Chemistry posted a loss of SK 132 million.
Pyrosequencing develops, manufactures and markets complete systems for rapid applied genetic analysis, based on its patented Pyrosequencing technology for sequencing DNA.
Personal Chemistry has developed a new technique for organic chemical synthesis, known as Coherent Synthesis, that shortens the duration of reactions 10- to 1,000-fold, opens up the possibility of synthesising previously intractable molecules and increases reproducibility.