28 cents- is that us or aus

  1. 4,061 Posts.
    lightbulb Created with Sketch. 30
    Molecular Devices To Buy Axon, Boosts 2H Rev View
    March 21, 2004: 21:33 p.m. EST



    SUNNYDALE, Calif. (Dow Jones)--Molecular Devices Corp. (MDCC) agreed to acquire Axon Instruments Inc. (AXN.AU) in a deal valued at $169 million, leading the bioanalytical device maker to boost its second half of the year revenue guidance by $20 million to a range of $145 million to $155 million.

    In a press release Sunday, Sunnyvale, Calif.-based Molecular Devices said it will pay $70 million in cash and $70 million in stock to acquire Axon, which makes instrumentation and software for cellular neurosciences, genomics, and cell-based screening.

    Molecular also will assume $29 million in cash and marketable securites as part of this acquisition, which will expand the company's product portfolio with systems for cellular neurosciences and genomics.

    Under the terms of the transaction, each share of Axon common stock will be converted into the right to receive 13.59 cents in cash and 0.00734 of a share of Molecular Devices common stock. This would value each Axon Instruments share at about 28 cents, based on Molecular's last closing price of $19.32

    A substantial portion of the equity held in Axon is traded on the Australian Stock Exchangein CUFS. Therefore, each CUFS holder would also receive 13.59 cents in cash and 0.00734 of a share of Molecular Devices common stock. Molecular Devices said Axon's Chief Executive Alan Finkel is slated to hold the posts of chief technology officer and vice president of Molecular Devices. He will report to Molecular Devices' President and Chief Executive Joseph Keegan. Meanwhile, Axon's President Geoffrey Powell will retire from his post when the deal closes in the second quarter.

    As a result of this acquisition, Molecular Devices raised its second half of the year revenue guidance by $20 million, bringing the range to $145 million to $155 million.

    Molecular Devices also expects to realize $4 million to $5 million in expense synergies on an annualized basis. The transaction will be neutral to earnings per share in 2004, but add to Molecular Devices' 2005 EPS.

    As such, the company maintained its 2004 earnings outlook of 65 cents to 75 cents a share. In 2003, Molecular Devices earned 51 cents a share.

 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.