One of Britain’s largest biotechnology companies has agreed to buy one of its long-term American suppliers for $340 million.
Abcam, which sells products and tools to 750,000 life science researchers around the world, has been buying and distributing stock from BioVision for almost 20 years. It said buying the company would provide “greater control over the innovation and distribution of BioVision’s product portfolio”.
Shares in Abcam, which is also listed on New York’s Nasdaq, rose by 67p, or 4.9 per cent, to close at £14.25 on London’s junior Alternative Investment Market yesterday. The company is valued at £3.2 billion and is based in Cambridge. Since it was set up in 1998, it has sold to customers in more than 130 countries.
BioVision, based in Milpitas, California, is owned by China’s NKY, a medical business. The proposed takeover, which is subject to regulatory clearance and the approval of NKY’s shareholders, is expected to be completed this year. Abcam will fund it by drawing from its cash pile and a revolving credit facility.
Alan Hirzel, chief executive of Abcam, said: “We know the BioVision business well, having been a major distributor of their products since 2003.”
