By Bio-IT World Staff
March 13, 2014 | Galapagos NV signed a definitive agreement to sell the BioFocus and Argenta service division operations to Charles River Laboratories International, Inc. (NYSE: CRL) for almost $180 million (Euro 129 million) in upfront payments and another $7 million upon achievement of revenue targets.
The transaction is subject to customary closing conditions and is expected to close early in the second quarter of 2014.
"These newly acquired capabilities are fully complementary to the services provided by Charles River, and Charles River therefore provides a logical and excellent home for Argenta and BioFocus," Galapagos CEO Onno van de Stolpe said in a press release. "With this transaction, Galapagos transforms from a hybrid drug discovery service and pipeline company into a research and development biotech focusing on developing innovative drugs for unmet medical needs.”
Charles River acquires all service operations of BioFocus and Argenta in the UK and The Netherlands. The acquisition includes all client contracts, order pipeline, premises, equipment, and further obligations of BioFocus and Argenta. All employees of BioFocus and Argenta will move into the Charles River organization upon completion of the transaction. David Smith will join Charles River as Corporate Vice President, In Vitro Discovery Services and lead the transition.
Galapagos has agreed to retain 5.4% of the initial payment in an escrow account for 15 months.