US-based MEDITE Group has signed a definitive purchase agreement to be acquired by CytoCore, a bio molecular diagnostics company.
The purchase agreement has been approved by the board of directors of both companies and is subject to standard and customary closing conditions and deliveries. The transaction is currently expected to close by 15 March 2014.
Under the terms of the purchase agreement, the shareholders of MEDITE will exchange all of the issued and outstanding capital stock of MEDITE in exchange for CytoCore common stock representing approximate 80% of CytoCore’s issued and outstanding common stock.
The new demands being placed on labs resulting from the passage of the Affordable Care Act, and the 1.6 million new cancer cases (2012) in the US, the combined company will leverage its expertise to continue developing new cancer diagnostic tools to improve early detection of these cancers.
Based on currently available information, MEDITE expects revenue of approximately $9.5m and a profit for the full year ended 31 December 2013. MEDITE has consistently generated positive net income under the current management team, which assumed control in 2006.
CytoCore CEO Robert McCullough, Jr noted this combination positions CytoCore to benefit from MEDITE’s existing business momentum and growth potential, while providing resources to commercialize the biomolecular technologies and products we have developed.
"We have been impressed with the quality and reliability of MEDITE’s products, and in the coming quarters we anticipate transitioning several exciting products developed by CytoCore to commercial availability, further capitalizing on MEDITE’s business momentum," McCullough added.
Upon completion of the acquisition, Michaela Ott will serve as CEO of the combined company, Michael Ott, currently co-president of MEDITE, will serve as president and COO, and McCullough, Jr. will continue to serve as CFO. The company will be headquartered in Orlando, Florida.