General Electric Co. (GE) has agreed to acquire Clarient Inc.
(CLRT) for about $587 million as the conglomerate looks to build
its disease-diagnosis capability.
Clarient provides molecular diagnostics technologies, which
provides precise information about a patient's cancer and help
doctors decide on the beat treatment. Global demand for
cancer-profiling products and services are expected to at least
triple to about $47 billion over the next five years.
Clarient's revenue has been growing at 68% compounded annual
rate since 2005, reaching $91.6 million in 2009. Clarient swung to
a second-quarter profit as revenue improved 21%, reversing a string
of losses. Third-quarter results are due Nov. 1.
"Adding Clarient's leading technology to our portfolio will
accelerate our expansion into cancer diagnostics and therapy
selection tools, while strongly enhancing our current diagnostic
and life sciences offerings," said GE Healthcare President and
Chief Executive John Dineen.
It hopes to be able to grow a $1 billion business in diagnostic
solutions for cancer and other diseases.
Under the agreement, General Healthcare will purchase Clarient's
common and preferred stock at $5 and $20 each, respectively.
Clarient's common shares closed Thursday at $3.74; they have
doubled since March.
Shares of GE, which has put a focus on growing its healthcare
business, were recently up 0.3% premarket to $16.15.
-By Jodi Xu, Dow Jones Newswires; 212-416-3037;
jodi.xu@dowjones.com