Bio-Techne Agrees to Buy Texas Testing Company for Up to $320M
Minneapolis-based life sciences firm Bio-Techne Corp. on Wednesday said it’s reached a deal to buy Austin, Texas-based Asuragen for up to $320 million.
Under the terms of the deal, Bio-Techne will pay an initial $215 million in cash to acquire the company. If the combined company hits “certain future milestones,” Bio-Techne is willing to up the price by $105 million. The transaction is slated to close in the Bio-Techne’s fourth fiscal quarter, which ends in June.
Asuragen, which manufactures tests for genetic disorders, had revenue of $30 million in 2020. For comparison, Bio-Techne reported annual revenue of $175.8 million last year.
Asuragen sells tests that determine if people are genetic carriers for certain disorders, including Fragile X syndrome, which is linked with intellectual disability. The company also provides cancer diagnosis tests for leukemia and lung cancer. The company’s “pipeline” of upcoming products will eventually include more carrier screening tests for additional “areas of concern for prospective new parents,” according to a news release.
Bio-Techne already has a clinical testing business. In the release, Bio-Techne president and CEO Chuck Kummeth said Asuragen is “very complementary” with the company’s existing products.
“We are not only acquiring a financially strong and scalable business [and] building our diagnostic portfolio … but are also adding a team with deep expertise in the intricacies of the global regulatory environment and a proven track record of opening new market channels,” Kummeth said.
Asuragen CEO Matt McManus will stay on board to lead his company’s “legacy business, as well as the integration process,” officials said.
Minneapolis-based law firm Fredrikson & Byron is serving as legal counsel for the transaction.
Bio-Techne, which now has more than 2,300 employees around the globe, has made more than a dozen acquisitions in recent years. In 2019, the company marked its 15th acquisition in a five-year period with the purchase of U of M startup B-MoGen BioTechnologies.
Bio-Techne is a publicly traded company; the firm is traded on Nasdaq. Asuragen is privately owned.