PerkinElmer Inc. (PKI) announced recently that it has agreed to acquire Signature Genomic Laboratories LLC, a diagnostic genetic testing company. The transaction is expected to close in May 2010.
 
As per the filing with the US Securities and Exchange Commission (SEC), PerkinElmer will acquire the company for $90 million in cash.
 
The deal should enable PerkinElmer strengthen its genetic testing service business and expand its position in early detection of the disease, specifically in the molecular diagnostics market. Furthermore, the deal will bolster PerkinElmer’s position in cancer diagnostics.
 
Through this acquisition, PerkinElmer gains access to strong complementary assets that help in diagnosing disorders that often remain undetected by traditional genetic tests.
 
Furthermore, the broader portfolio will benefit patients, researchers and doctors alike as accurate diagnosis is necessary to treat and understand patients suffering from birth defects, behavioral issues, delay in development and learning problems.
 
Signature, which employs approximately 120 people, was the first laboratory to provide microarray-based diagnostic testing for people with developmental disabilities. The company, based in Spokane, Washington, used its proprietary SignatureChip microarray for the purpose. The microarray diagnostic technology can be used for pre-natal as well as post-natal identification of DNA alterations associated with genetic disease.
 
Headquartered in Waltham, Massachusetts, PerkinElmer provides scientific instruments, consumables, and services to pharmaceutical, biomedical, environmental testing, chemical, and general industrial markets worldwide. PerkinElmer markets its products and services in more than 150 countries.
 
PerkinElmer operates in a highly competitive industry characterized by rapid technological changes and evolving industry standards. The company competes with big players such as Agilent Technologies Inc. (A), Thermo Fisher Scientific, Inc. (TMO) and Waters Corp. (WTO).
 
Currently we are Neutral on PerkinElmer.

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