Cancer Genetics Inc. agreed to acquire vivoPharm Pty. Ltd. for about $12 million.
VivoPharm is a contract research organization that provides preclinical oncology and immuno-oncology services, offering integrated service in different disease areas to the biotechnology and pharmaceutical industries.
The purchase price includes $1.2 million in cash, while the remaining 90% will be shares of Cancer Genetics based on the volume-weighted average price over the last 20 business days.
Cancer Genetics signed an equity financing arrangement for up to $16 million to fund the acquisition and increase working capital for general corporate purposes. The initial tranche of funding will be $3 million, while additional tranches can be accessed by Cancer Genetics at its discretion over the next 2 years.
Ralf Brandt, CEO and managing director of vivoPharm, will become president of discovery and early development services at Cancer Genetics upon completion of the acquisition.
Cancer Genetics expects the acquisition of vivoPharm to contribute about $5 million in annual revenue and expects it to be immediately accretive.
The deal, which has been approved by the boards of both companies, is expected to close Aug. 15.