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Acquisition of US-based SPEware
Corporation further expands Tecan's dedicated solutions offering
into new market segment
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SPEware to
become part of Tecan's Life Sciences Business, leveraging Tecan's
global presence and strong position in mass
spectrometry sample preparation automation platforms
-
Over 70% of SPEware's revenues are generated from
smart consumables, thus increasing Tecan's overall recurring
revenues
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Base consideration of USD 50.0
million (CHF 49.0 million)
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Valuation representing
approximately three times expected fiscal year 2016 sales of
SPEware; SPEware's EBITDA margin exceeds
Tecan's
-
Transaction anticipated to be
immediately accretive to earnings per share before
transaction-related amortization
-
Closing of the transaction
expected within the coming weeks
Männedorf, Switzerland, August 31, 2016 - The Tecan
Group (SIX Swiss Exchange: TECN) announced today the acquisition of
US-based SPEware Corporation (SPEware) to further expand Tecan's
dedicated solutions offering into a new market segment. SPEware is
a leading provider for mass spectrometry sample preparation
solutions, with a focus on the North American market. SPEware will
become a part of Tecan's Life Sciences Business, leveraging Tecan's
global presence, customer base and strong position serving the
market with automation platforms optimized for sample preparation
for mass spectrometry analysis. With over 70% of revenues generated
with smart consumables, the acquisition of SPEware will further
expand Tecan's overall recurring revenues.
The base purchase
consideration of USD 50.0 million (CHF 49.0 million) will be fully
paid in cash and represents a valuation of approximately three
times fiscal year 2016 sales of SPEware, while SPEware's EBITDA
margin is exceeding Tecan's level. An additional earn-out
consideration of up to USD 10.0 million (CHF 9.8 million) will be
payable subject to the achievement of certain performance-related
targets over the next two years. The transaction is expected to be
immediately accretive to earnings per share (EPS) before
transaction-related amortization. The closing of the transaction is
anticipated within the coming weeks. Hence, Tecan does not expect a
significant impact of the acquisition on its 2016 financial
results.
Tecan CEO Dr. David
Martyr commented: "The entire SPEware team has done a great job of
developing and commercializing their proprietary solid phase
extraction technology. With SPEware's current focus on North
America, we are excited about the opportunity to leverage Tecan's
global sales and service infrastructure to build on that momentum
and further accelerate growth. This transaction follows very much
the rationale of our acquisition of IBL International in 2014,
which supported our evolution into a solutions business for
dedicated applications. With SPEware's consumable and dedicated
instrument offering, we can now expand our solution offering into
the sample preparation for mass spectrometry market, complementing
the market for specialty immunoassays served by IBL International.
We very much look forward to welcoming the SPEware team into
Tecan."
Phil Dimson, CEO and
founder of SPEware, said: "We couldn't be more excited to join with
the Tecan Group as this combination adds significant synergistic
value for our customers and employees. Tecan's global market
presence as a leader in laboratory automation platforms, including
in our core market, is the perfect complement to SPEware's smart
consumables and devices for mass spectrometry sample preparation
solutions."
A
leading provider for mass spectrometry sample preparation
solutions
SPEware provides advanced sample preparation solutions to
analytical laboratories, by combining smart chemistry consumables
with dedicated instruments and modules to make liquid
chromatography-mass spectrometry (LC-MS) workflows more efficient.
The overall market for these extraction technologies expands with a
mid single-digit percentage rate per year. SPEware has clearly
outgrown the market in recent years, due to its differentiated
product offering and to the underlying market trend of adoption of
automated solid phase extraction as the preferred sample
preparation technique for high complexity tests.
SPEware's clients are
mostly large reference labs and specialized laboratories in North
America that predominantly use SPEware's solutions for toxicology
testing and other analyses of complex sample matrices such as urine
or saliva. Separation of targeted analytes from complex matrix
components prior to injection onto the LC-MS offers numerous
advantages including improved assay robustness and less instrument
maintenance. SPEware's proprietary micro-particulate sorbent
consumables for solid phase extraction offer important advantages,
including higher selectivity, reproducible separations and overall
data improvement. Workflows are also more automation friendly which
offers the additional potential of integrating SPEware's automated
positive pressure processors into Tecan's liquid handling
workstations.
Established almost 20
years ago, SPEware is based in Baldwin Park, California (USA), and
has over 60 employees. The company operations are vertically
integrated with product development, columns packing, molding
operation and the manufacturing of dedicated hardware devices.
Additional information
can be found on the SPEware webpage:
www.spewarecorporation.com
Achelous Partners, LLC,
served as financial advisor to SPEware on the transaction.
About
Tecan
Tecan (www.tecan.com) is a leading global provider of laboratory
instruments and solutions in biopharmaceuticals, forensics and
clinical diagnostics. The company specializes in the development,
production and distribution of automated workflow solutions for
laboratories in the life sciences sector. Its clients include
pharmaceutical and biotechnology companies, university research
departments, and forensic and diagnostic laboratories. As an
original equipment manufacturer (OEM), Tecan is also a leader in
developing and manufacturing OEM instruments and components that
are then distributed by partner companies. Founded in Switzerland
in 1980, the company has manufacturing, research and development
sites in both Europe and North America and maintains a sales and
service network in 52 countries. In 2015, Tecan generated sales of
CHF 440 million (USD 459 million;
EUR 411 million). Registered shares of Tecan Group are
traded on the SIX Swiss Exchange (TECN; ISIN CH0012100191).
For
further information:
Tecan
Group
Martin Braendle
Vice President, Communications & Investor Relations
Tel. +41 (0) 44 922 84 30
Fax +41 (0) 44 922 88 89
investor@tecan.com
www.tecan.com
Press Release