Orchid Bioscience acquires Lifecodes

Orchid BioSciences of the USA has signed a definitive agreement toacquire Lifecodes Corp, which is described as "a leading provider of identity genomics testing for forensics and paternity," in an all-stock deal. Under the terms of the purchase, Orchid will issue 6.5 million new shares of common stock in the transaction in exchange for 100% of the outstanding equity of Lifecodes. The merger is subject to approval by the latter's shareholders and is due to close in the fourth quarter of 2001.

No financial details were disclosed of the transaction, which Orchid expects will lead to a doubling of its 2002 revenues, now projected to total well over $50 million for the combined companies. It will also enable the group to launch a new Orchid Diagnostics unit, which will have initial annual product sales estimated at more than $12 million.

Orchid added that the deal will make it the US market leader in identity genomics, which have estimated annual worldwide sales of approximately $500 million and the largest DNA diversity testing company in terms of revenue. The transaction will be cash-accretive in about 12 months and will accelerate Orchid's expected time to profitability by a year to early 2004.