Digene Corporation, a graduate of the Technology Advancement Program (TAP), announced a deal on June 3 to be acquired by Netherlands-based Qiagen NV, a maker of genetic testing equipment, for $1.6 billion.
Digene was a portfolio company in TAP from 1985 to 1988.
The announced transaction, subject to the tender of a majority of Digene's common stock and approval of Qiagen's shareholders, as well as regulatory approvals, is expected to close in September.
Through the deal, Digene shareholders can elect to receive 3.545 shares of Qiagen stock for each Digene share owned, or $61.25 a share in cash. That share value represents a 37 percent premium to its closing price on the Nasdaq on Friday, June 1, the companies indicated in a joint statement.
Digene and Qiagen forecast that the combined company will have over $350 million in molecular diagnostics revenues, and more than $800 million in revenues overall in 2008.
Digene is a leader in molecular diagnostics. The company’s primary product, the Digene HPV (human papillomavirus) Test, screens for the presence of high-risk types of the virus that have been shown to be the cause of cervical cancer. The Digene HPV Test is the only test for HPV that is both FDA-approved and CE-marked (approved in Europe). This addresses one of the largest and most rapidly expanding market segments in women's health and molecular diagnostics.