Two medical-focused companies based in Manchester have joined forces in a £9.2m acquisition.
AIM-listed Yourgene Health, the international molecular diagnostics group which commercialises genetic products and services, has conditionally agreed to acquire Elucigene.
Elucigene is a leading molecular diagnostics manufacturer and developer.
The deal will be satisfied by the payment of £6.3m in cash and the issue of 24,581,111 new ordinary shares.
Lyn Rees, Yourgene chief executive, said: “The acquisition of Elucigene will strengthen Yourgene’s product portfolio within reproductive health and produce cross-selling opportunities across our client bases.
“The combination of the businesses will immediately increase our commercial footprint to 57 territories, adding an additional 150 customers to the enlarged group into which we will aim to cross-sell our respective complementary products.
“We have a unique opportunity to bring our skill sets together under one roof, expand our combined sales force and leverage our respective technical and regulatory expertise and partnerships to extend our genetic testing offering.
“We are excited to be consolidating our position within molecular diagnostics and accelerating our road to profitability.”
Mark Street-Docherty, chief executive of Elucigene, said: “We believe strongly in the rationale for bringing Elucigene’s business together with Yourgene’s and this is reflected in the executive management team of Elucigene rolling the majority of its equity into Yourgene.
“We look forward together to continuing to deliver innovative products that improve patient outcomes.”
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