Vitrolife expands its IVF product portfolio through acquisition in the USA.
Vitrolife is acquiring the business in Conception Technologies, USA. This means that Vitrolife will broaden their IVF product portfolio, increase cost-efficient production capacity and increase its market share, above all in North America.
“The broadening of the product portfolio strengthens our product offering. Through our newly expanded sales organization we are able to increase the sales of Conception Technologies products globally. This gives us considerable revenue synergies, which is completely in line with our strategy of exploiting the investments we have made in a global market and sales organization. Vitrolife will also strengthening its market share in North America, the market Conception Technologies’ products primarily has been sold” says Nils Sellbom, Sales and Marketing Director at Vitrolife.
Conception Technologies is based in San Diego, California. The company was formed in 1992 and has approximately 30 employees. Sales are just over USD 4 million with a product portfolio of products for in-vitro fertilization, and in-house cost-effective production of advanced pipettes for micromanipulation, which complements the series of pipettes that Vitrolife already has.
The business in Conception Technologies will be integrated with Vitrolife’s subsidiary Vitrolife Inc, which will thus have two production facilities in the USA, one in Denver, Colorado, and one in San Diego, California. It is estimated that the acquisition will have been completed before the end of October.
Vitrolife is acquiring the business in Conception Technologies for a purchase price of approximately USD 5 million. The acquisition is being financed in its entirety through bank loans in USD. Vitrolife does not expect the acquisition to have any noticeable effect on earnings per share for 2010 but the business will contribute positively to profits starting in 2011.
“This expansion of Vitrolife’s product portfolio within the fertility area means that we are now decidedly closer to our strategic objective of having a complete line of advanced products for IVF treatment, where we can without exception offer clinics and patients guaranteed quality and functionality in order to optimize the chances of successful fertility treatment,” says Magnus Nilsson, CEO of Vitrolife.
October 12, 2010
Gothenburg
Magnus Nilsson
CEO
Queries should be addressed to:
Magnus Nilsson, CEO, phone +46 31 721 80 61
Anne-Lie Sveder, CFO, phone +46 31 721 80 13
Vitrolife is a global biotechnology/medical device Group that works with developing, manufacturing and selling advanced products and systems for the preparation, cultivation and storage of human cells, tissue and organs. The company has business activities within three product areas: Fertility, Transplantation and Stem Cell Cultivation.
The Fertility product area works with nutrient solutions (media), cryopreservation products and advanced consumable instruments such as needles and pipettes, for the treatment of human infertility. The Transplantation product area works with solutions and systems to evaluate and maintain organs outside the body in order to select usable organs and keeping them in optimal condition while waiting for transplantation. The Stem Cell Cultivation product area works with media and instruments to enable the use and handling of stem cells for therapeutic purposes.
Vitrolife today has approximately 180 employees and its products are sold in more than 85 markets. The company is headquartered in Gothenburg, Sweden, and there are subsidiaries in USA, Australia, France, Italy United Kingdom and Japan. Production facilities are located in Sweden and in the USA.
The Vitrolife share is listed on NASDAQ OMX Stockholm, Small Cap.
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Vitrolife AB (publ), Box 9080, SE-400 92 Göteborg, Sweden. Corporate identity number 556354-3452.
Tel: +46 31 721 80 00. Fax: +46 31 721 80 90. E-mail: info@vitrolife.com. Homepage: www.vitrolife.com.
Vitrolife is required to publish the information in this press release in accordance with the Swedish Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication on October 12, 2010 at 05.30 pm.
This is a translation of the Swedish version of the press release. When in doubt, the Swedish wording prevails.
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