Benzinga | Aug 2, 2021 07:38AM EDT

Abcam To Acquire Supplier BioVision For $340M In Cash

* Abcam plc (NASDAQ:ABCM) has agreed to acquire BioVision Inc, a wholly-owned Boai NKY Medical Holdings Ltd subsidiary, for $340 million in cash.

* The Milpitas, California-based BioVision is a distributor of life science research tools to biopharma, diagnostic and academic customers, with strength in biochemical and cell-based assay kits.

* BioVision started supplying Abcam in 2003, and the transaction represents a compelling strategic fit for Abcam.

* Abcam plans to fund the acquisition from existing cash resources and a partial drawdown of its revolving credit facility.

* As of 31 December 2020 (1H of FY2021), Abcam had a net cash position of ?211.9 million.

* For the fiscal year ended December 2020, BioVision generated revenue of $33.8 million and an operating profit of $12.6 million.

* Abcam expects to close the deal by the end of 2021 and expects it to be accretive to adjusted EPS from the first full year of ownership.

* Concurrent with the acquisition, Abcam entered into a memorandum of understanding to establish a partnership to develop and supply products and services to NKY to support ongoing product development and commercialization in the IVD field.

* A conference call and webcast for analysts and investors will be held today at 9:30 AM E.T.

* Price Action: ABCM shares traded higher by 2.01% at $19.29 in premarket on the last check Monday.