* Solidifies leadership position as supplier of innovative automation
products to the drug discovery market
* Opens up new market segments in high-throughput screening, functional
genomics, proteomics and structural genomics
* Enhances revenue opportunities and expected financial performance
ANN ARBOR, Mich., Sept. 7 /PRNewswire/ -- Genomic Solutions Inc.
(Nasdaq: GNSL) announced today the signing of a definitive agreement to
acquire Cartesian Technologies, Inc. (Cartesian), a leading manufacturer of
innovative systems for the life science industry based in Irvine, CA. Genomic
Solutions will issue 6,800,681 shares of common stock, options to purchase
449,319 shares of common stock and $2.5 million in cash to acquire privately
held Cartesian. The transaction is expected to close in the fourth quarter of
this year, subject to the satisfaction of customary closing conditions,
including approval by the company's stockholders.
(Photo: http://www.newscom.com/cgi-bin/prnh/20000714/GENOMICLOGO )
Formed in 1994, Cartesian's product sales for the past 4 years have
increased at an average annual rate of 74%. The company provides systems for
precision microscale liquid handling and automation. Cartesian products meet
the needs of scientists in the pharmaceutical, biotech, and life science
research markets, helping to automate and increase the process efficiencies in
areas such as high-throughput screening, DNA microarray production and
combinatorial chemistry.
"Enhanced revenue and cost reduction opportunities, plus the inherent
product cross selling opportunities, make this acquisition a timely, ideal fit
for Genomic Solutions. The combined company will be a significant player in
automation tools for drug discovery with broad product lines for microarrays,
proteomics, high-throughput screening and combinatorial chemistry," according
to Jeffrey S. Williams, President and CEO of Genomic Solutions. "The
acquisition will complement the company's microarray and proteomic product
lines with high throughput screening automation products and will strengthen
its existing product lines," Williams continued.
Cartesian President Thomas C. Tisone, Ph.D. commented, "we feel strongly
that combining the resources, technology, products and markets of Cartesian
and Genomic Solutions creates a company that will offer a full range of state
of the art systems for all areas of drug discovery applications. Our
respective technologies, products and markets served, are a perfect complement
to each other."
Strengthened Market Position
* Cartesian has developed innovative micro-dispensing technologies for a
wide variety of applications. The most recent example is the patented
synQUAD(TM) technology for dispensing nanoliter volumes of reagents with
high-speed precision and accuracy. Cartesian products based on this
technology are experiencing rapid sales growth in the high throughput
screening, functional genomic and combinatorial chemistry markets.
* The acquisition will broaden Genomic Solutions sales opportunities
through the addition of Cartesian microarray systems to the company's
product line and modification of other existing products through
incorporation of Cartesian technology. Cartesian currently has an
install base of 170 microarrayers and is the leader in 1536 well liquid
handling for high throughput screening.
* The acquisition will dramatically bolster Genomic Solutions' presence in
the high throughput screening, functional genomics, proteomics and
structural genomics market segments. Liquid handling and high-speed
dispensing accounted for approximately 75% of Cartesian's fiscal year
2000 revenues. Microarray robots accounted for most of the remaining
sales. Cartesians' sales for the fiscal year ending October 31, 2001 are
projected at over $9 million, with profits in excess of $200,000.
Additional Financial Information
The transaction is anticipated to close in the fourth quarter. Management
expects to provide additional information regarding the financial outlook for
the combined companies during Genomic Solutions third quarter financial
conference call.
About Genomic Solutions
The company designs, develops, manufactures, markets and sells
instruments, software, consumables and services used to determine the activity
level of genes and to isolate, identify and characterize proteins. The
company's products and systems enable researchers to perform complex, high
volume experiments at a lower cost and in less time than traditional
techniques. As a result, Genomic Solutions products and systems facilitate
more rapid and less expensive drug discovery.
Special Note
Statements in this news release that are not strictly historical are
"forward-looking" statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
These statements involve a high degree of risk and uncertainty that exist in
the company's operations and business environment. Such statements are
predictions only and actual events or results may differ materially from those
projected in such forward-looking statements. Factors that could affect actual
events or results include risks associated with performance under the
company's agreements with third parties, research and development progress,
competitive products and the strength of the company's patent portfolio.
These factors and others are more fully described under "Risk Factors" in
Genomic Solutions' Form 10-K for the year ended December 31, 2000, and in
Genomic Solutions' other filings with the Securities and Exchange Commission.
The company expressly disclaims any obligation or undertaking to release
publicly any updates for revisions to any forward-looking statements contained
herein to reflect any change in the company's expectations with regard thereto
or any change in events, conditions or circumstances on which any such
statements are based.
For more information
Contact Genomic Solutions at corporatecommunications@genomicsolutions.com
or visit the company's Web site, http://www.genomicsolutions.com .
SOURCE Genomic Solutions Inc.
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http://www.genomicsolutions.com
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PRN Photo Desk, 888-776-6555 or 212-782-2840
CONTACT:
Investor, Steven J. Richvalsky, Executive
Vice President, Chief Financial Officer,
steve@genomicsolutions.com , or Media, Kathleen M. Murphy, Vice
President, Corporate Communications,
kathleen.murphy@genomicsolutions.com , both of Genomic Solutions
Inc., +1-734-975-4800
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