BRIEF—ImmunoPrecise to acquire Preclinics GmbH

Canada based ImmunoPrecise has signed a binding letter of intent with privately-held German firm Preclinics GmbH, whereby the company has agreed to acquire all of the issued and outstanding shares of Preclinics.

The transaction continues to realize on the board's commitment to grow globally through strategic acquisitions.

It contributes significantly to IPA extending its ambition of becoming a single-source provider of services across the full antibody discovery value chain (antigen design, hit generation, lead selection, lead optimization and lead characterization) and to offer the full spectrum of antibody production methodologies (library based technologies, hybridoma methods, transgenic animal based platforms and single B cell based technology).

Furthermore, the acquisition enhances the company's source of and capacity for in vivo and in vitro research and formats.

"In acquiring Preclinics GmbH, IPA continues to build its capacity as a single source provider for the antibody discovery process through pharmacological contract research and research services and capabilities targeted to immunization and production of antisera as well as animal care facilities" said Dr James Kuo, chairman, interim president of ImmunoPrecise.

Terms of the transaction

Under the binding letter of intent, the companies have agreed to negotiate a definitive agreement whereby the company will acquire all of the issued and outstanding shares of Preclinics for 2.3 million euros ($2.7 million), payable 35% in cash and the remainder by the issuance of common shares of the company on closing of the transaction, and (B) an additional 750,000 euros is to be paid in succession payments over a period of three  years based on continued profitability with 250,000 euros within one year, 250,000 euros) in year 2 and 250,000 euros (in year 3 with option of Preclinics' shareholders to take the payments in cash or equity.