MELBOURNE, Australia, June 5 /PRNewswire/ -- Vision Systems Limited subsidiary, Vision BioSystems, effective from 2 June 2006 has acquired the business and assets of privately held, USA based, ImmunoVision Technologies Inc., in a cash transaction payable by instalments over four years.
Acquisition Rationale
The acquisition rounds out Vision BioSystem’s internationally competitive range of pathology laboratory automation instruments and companion reagents. It will add a number of high value reagent products to Vision BioSystem’s portfolio including the market leading PowerVision polymer based visualisation reagent used in immunohistochemistry staining and will bring platform chemistries that complement Vision BioSystem’s Novocastra antibody range.
The acquisition will ensure the reliability of supply of a key component of Vision BioSystem’s Bond(TM) visualisation system and is expected to deliver improved combined margins through vertical integration.
Vision BioSystems Growth Strategy
“The acquisition of the ImmunoVision Technologies business is consistent with our strategy of expanding our offering of high value, high margin products in the Histology market”, said Michael Ohanessian, CEO Vision BioSystems. “The PowerVision visualisation system is currently used on our Bond(TM) advanced staining system, and has been an important ingredient in achieving tissue staining of the highest quality and clarity”.
Acquisition Financial Details
The present value of the purchase consideration, staggered over four years, is $56 million using a discount rate of 6%. The acquisition will be immediately earnings per share accretive and should positively impact fiscal 2007 earnings for VSL by $6 million at the EBITA line growing to over $10 million by 2010. The consideration of $66.6 million is made up of an upfront payment of A$13.3 million plus four annual payments of A$13.3 million (the last being in 2010).
Histology Market Profile
Histology is defined as the study of tissue structures/morphology and is an important technique in assisting pathologists and oncologist with the diagnosis of cancer and infectious diseases. Using various reagent tests, the anatomical pathologist examines tissue samples to look for structural and molecular changes in cells to assist in diagnosis. Histology, and IHC staining in particular for cancer detection, is the method of choice for accurate diagnosis of solid tumours. The international histology market for laboratory automation instruments and associated reagents is in excess of $1billion per year and growing at over 10%pa.
Polymer Based Detection Polymer detection technology is an advancement in immunohistochemical visualisation chemistry. Polymer detection, unlike conventional biotin based systems are far more effective at eliminating background staining and thus delivering a cleaner, higher quality image. In addition, polymer based detection offers increased sensitivity as compared with conventional methods. ImmunoVision Technologies has a unique polymer-enzyme-protein conjugation methodology which produces versatile detection systems capable of intense nuclear, cytoplasmic, and membrane antigen staining.
Vision BioSystems Profile
Vision BioSystems develops, manufactures and distributes instruments and reagents to clinical histopathology and research laboratories worldwide. Vision’s products are used for tissue preparation and staining to assist with the diagnosis of cancer and infectious diseases. Vision BioSystems also provides contract manufacturing services to global clients in the broader in vitro diagnostics and life sciences fields.
For further information, contact Dr James Fox Mr C Euan Pizzey Managing Director Director of Finance Vision Systems Limited Vision Systems Limited Telephone: +61 3 9211 7018 Telephone: +61 3 9211 7020 Facsimile: +61 3 9211 7001 Facsimile: +61 3 9211 7001
Source: Vision Systems Limited
