27th Jul 2015 07:53
LONDON (Alliance News) - Laboratory services and products company Source BioScience PLC on Monday said it has struck a deal to acquire European pharmaceutical testing services provider Select Pharma Laboratories Ltd for up to GBP7.3 million in cash.
Source Bioscience said it will fund the deal via a GBP4.4 million share placing and with a GBP3.5 million debt facility. It will use GBP3.2 million of the placing to pay the initial consideration of GBP6.7 million, it said. The other GBP0.6 million of the consideration will be deferred for two years and paid based on Select Pharma hitting financial targets.
Under the placing, Source Bioscience will issue 31.4 million shares at 14 pence per share. Shares in the company were up 6.9% to 14.85p in early trade on Monday.
Source Bioscience said it expects the deal to strengthen its position in providing integrated storage and stability testing services and said the enlarged group will be able to provide a bigger selection of bioanalytical laboratory services.
"The proposed acquisition of Select will provide the company with the expertise and capability to provide stability testing services that are highly complementary with the group's existing stability storage services," said Chief Executive Nick Ash.
By Sam Unsted; [email protected]; @SamUAtAlliance
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