GE buys HudsonAlpha associate Clarient
By Budd McLaughlin
HUNTSVILLE, AL -- General Electric says its healthcare unit will buy diagnostics company Clarient in a deal to speed its expansion into cancer diagnostic and therapy selection tools.
The company says the deal values Clarient, which is an associate company at Huntsville's HudsonAlpha Institute for Biotechnology, at $580 million net of cash and investments.
GE Healthcare and Clarient officials say the deal will help them build a $1 billion-plus business developing integrated diagnostic solutions for cancer and other diseases.
"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. We believe we can build a $1 billion-plus business by developing integrated diagnostic solutions for cancer and other diseases," said John Dineen, president/CEO of GE Healthcare.
"The combination of Clarient's people, technologies and services with the resources, brand value, technical capabilities and global reach of GE Healthcare is a tremendous opportunity for the highly talented Clarient team," said Clarient CEO/Vice Chairman Ron Andrews. "We will now have access to the resources we need to accelerate our development plans."
GE says it will start a cash tender offer to pay $5 per share for Clarient common stock and $20 for each preferred share. The offer for the common shares is a 34 percent premium over Clarient's closing price of $3.74 on Thursday.
Clarient board members have approved the deal and recommend stockholders tender their shares.
The transaction is expected to close this year or in early 2011.