SANTA CLARA, Calif., June 7, 2007
Agilent Technologies Inc. (NYSE: A) today announced it has completed the acquisition of Stratagene Corp. (NASDAQ: STGN), a leading developer, manufacturer and marketer of specialized life science research and diagnostic products. Agilent expects this strategic acquisition to accelerate its growth in life sciences through a complementary product portfolio and strong market reach into academia and government.
Agilent announced the definitive agreement to acquire Stratagene on April 6, 2007. The company paid approximately $250 million for Stratagene, or $10.94 per share of common stock. Completion of this acquisition will have no impact on Agilent's earnings-per-share guidance. Agilent's revenue guidance for the third quarter is now $1.38 billion to $1.42 billion.
Stratagene is a worldwide leader in developing innovative products and technologies for the growing life science research market. Agilent believes the total addressable life science market to be $14 billion, with an estimated compounded annual growth rate of 7 to 9 percent over the next three years.
"We are excited about the opportunities ahead," said Nick Roelofs, vice president and general manager of Agilent's Life Sciences Solutions Unit. "With our combined product portfolios, technology, R&D expertise and employees, we will serve a wider customer base with more comprehensive workflow solutions. This acquisition is truly an example of one-plus-one is greater than two because of the workflow leverage we anticipate from combining our two companies."
Stratagene supports advances in life sciences by inventing, manufacturing and marketing products that simplify, accelerate and improve research. Since 1984, the company's products have been used throughout the academic, industry and government research sectors in fields spanning molecular biology, genomics, proteomics, drug discovery and toxicology. Stratagene employs more than 450 people worldwide, who have now joined Agilent.
The Stratagene acquisition is expected to strengthen Agilent's life science offerings in genomics and proteomics, particularly in academia and government where Stratagene products and market leadership are well recognized. Meanwhile, Agilent's sales channel strength in the pharmaceutical market provides additional opportunities for expanding the reach of Stratagene's portfolio of reagents and instruments.
Stratagene is the largest acquisition that Agilent has made in several years, underscoring the company's commitment to life sciences. Stratagene's extensive portfolio of PCR enzymes and instrument capabilities, including quantitative PCR, coupled with Agilent's range of product platforms, software and data management capabilities, provides full workflow solutions to both academic and pharmaceutical customers.
Stratagene's product portfolio includes reagents for life science research and instruments. The company also offers a range of diagnostics products, including applications for allergy testing and urinalysis.
Stratagene's life science reagent and instrument manufacturing facility in Cedar Creek, Texas, as well as its diagnostics facilities in Garden Grove, Calif., and Edinburgh, Scotland, are all registered to the ISO 13485 standard. The diagnostics facilities are also licensed medical device manufacturers, compliant with the U.S. Food and Drug Administration's Quality System Regulation (QSR).
Other major Stratagene locations are La Jolla, Calif.; Tokyo, Japan; and Amsterdam, the Netherlands.
Agilent and Stratagene also have announced the sale of certain Stratagene assets to a new company, Decisive Diagnostics (a subsidiary of Catalyst Assets LLC), an entity formed by Dr. Joseph A. Sorge, former chairman, CEO and founder of Stratagene. Decisive Diagnostics is an entity formed to pursue molecular diagnostic applications. Decisive Diagnostics will acquire for $6.6 million certain assets of Stratagene from Agilent and license from Agilent certain of Stratagene's molecular diagnostic technologies.
More information about Stratagene is available at www.stratagene.com.
Agilent in Life Sciences
Agilent is the global leader in gas chromatography and gas chromatography/mass spectrometry, and liquid chromatography and liquid chromatography/mass spectrometry used to analyze the composition of air, water, food, drugs, industrial process streams and forensic evidence. The company is also a leading developer of hardware and software tools for life science analysis including genomics, proteomics and metabolomics. The company pioneered ink-jet in situ synthesis of nucleic acid microarray probes and microfluidic lab-on-a-chip Bioanalyzer and nano LC/MS applications that accelerate customer workflows.
About Agilent Technologies
Agilent Technologies Inc. (NYSE: A) is the world's premier measurement company and a technology leader in communications, electronics, life sciences and chemical analysis. The company's 19,000 employees serve customers in more than 110 countries. Agilent had net revenue of $5.0 billion in fiscal year 2006. Information about Agilent is available on the Web at www.agilent.com.
This news release contains forward-looking statements as defined in the Securities Exchange Act of 1934 and is subject to the safe harbors created therein. The forward-looking statements contained herein include, but are not limited to, information regarding Stratagene's technological expertise and its enhancement of our combined product portfolio, the contribution Stratagene would make to Agilent's ability to address customer demands, the ability of Agilent to provide improved products, services and support to its customers, Agilent's future revenues and earnings and guidance for Agilent for the third quarter of 2007. These forward-looking statements involve risks and uncertainties that could cause Agilent's results to differ materially from management's current expectations. Such risks and uncertainties include, but are not limited to, risks associated with the integration of Stratagene, risks associated with changes in demand for Agilent's and Stratagene's products, and risks associated with the development generally of Agilent's overall strategic objectives.
In addition, other risks that Agilent faces in running its operations include the ability to execute successfully through business cycles; ongoing competitive, pricing and gross margin pressures; the impact of geopolitical uncertainties on our markets and our ability to conduct business; the ability to improve asset performance to adapt to changes in demand; the ability to successfully introduce new products at the right time, price and mix and other risks detailed in Agilent's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the period ended October 31, 2006, and its Quarterly Report on Form 10-Q for the period ended April 30, 2007. Forward-looking statements are based on the beliefs and assumptions of Agilent's management and on currently available information. Agilent undertakes no responsibility to publicly update or revise any forward-looking statement.
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Michele Drake, Agilent Corporate
Stuart Matlow, Agilent LSCA
Rodney Gonsalves, Agilent