BioLife Solutions, Inc. (BLFS) last week inked a definitive agreement with SciSafe to acquire the privately held firm. The company will pay an amount of $30 million to purchase the firm, out of which $15 million will be paid in cash while remaining amount will be paid through company’s newly issued common stock.
As per agreement terms, current investors of SciSafe will be eligible to get incentives upon achieving certain annual revenue milestones by assets from the business. The incentive plan will remain in force for a period of four years and include issuance of up to 626,000 additional shares to SciSafe’s investors. BioLife did not provide any details about the agreed targets to be achieved. Current price of BioLife shares suggests an additional amount of under $18 million for 626,000 shares.
BioLife made the announcement on September 21, 2020, after which its stock’s price saw a marginal drop but at the moment its weekly performance is 6.23%. All other longer duration performances matrixes are also in the green.
BioLIfe is engaged in the developing, manufacturing and marketing a portfolio of cell and gene therapy bioproduction tools. With wide range use of its products in gene and cell therapies, BioLife has been acquiring potentially key asset. SciSafe is a provider of pharmaceutical and biological storage with many of the clientage same to that of BioLife. But SciSafe also have some additional top pharmaceutical companies in its customer portfolio.
With the acquisition of SciSafe, BioLife will be able to serve its cell and gene therapy customers with more valuable services. SciSafe brings in not only an established business to the BioLife but will also excellent reputation, loyal customers and a team of seasoned professionals, said Mike Rice, BioLife’s CEO.
BioLife is expecting SciSafe contributing about $1.8 million to company’s revenue in the fourth quarter, while full year ex-pectation for the same are $9 million for 2021.