Harvard Bioscience To Acquire Data Sciences International

Harvard Bioscience To Acquire Data Sciences International

Harvard Bioscience, Inc. (“HBIO”), a global developer, manufacturer and marketer of a broad range of solutions to advance life science, entered into a definitive merger agreement to acquire 100% of the outstanding stock of Data Sciences International, Inc. (“DSI”) for approximately $70 million on January 22, 2018.

DSI, a St. Paul, Minnesota-based life science research company, is a recognized leader in physiologic monitoring focused on delivering preclinical products, systems, services and solutions to its customers. Its customers include pharmaceutical and biotechnology companies, as well as contract research organizations, academic labs and government researchers. For the trailing 12 months ending December 31, 2017, DSI had approximately $44 million in revenue.

The acquisition of DSI will be accretive to earnings at closing, diversifies the Company’s customer base into the biopharma and contract research organization markets, and offers significant revenue and cost synergies.

DSI has a strong presence in the pharmaceutical and biotech industries, as well as with contract research organizations. There was almost no overlap in the companies’ top customers as of December 31, 2017.

HBIO expects the transaction to generate approximately $2.5 million to $3.5 million in combined revenue and cost synergies 12 months following closing and increase over the first 3 years following closing.

The boards of directors of HBIO and DSI have each approved the merger agreement and the merger, consummation of which is subject to customary closing conditions, including adoption of the merger agreement by the stockholders of DSI. Concurrently with the signing of the merger agreement, stockholders of DSI, representing a majority of the outstanding voting shares of DSI in the aggregate, voting together on an as converted basis, and of at least two thirds of the preferred stockholders of DSI, entered into voting and support agreements to vote their shares in favor of the merger transaction.

“This is a momentous day for Harvard Bioscience,” said Jeffrey A. Duchemin, HBIO’s President and Chief Executive Officer.  “Our entire organization has worked tirelessly over the last three years to build a foundation to be able to acquire and integrate a company like DSI.  From implementing ERP platforms, consolidating facilities, and initiating prudent cost containment programs, Harvard Bioscience is ready to take a significant step forward in our strategic vision of HBIO.  Upon the closing of the DSI acquisition, we will have transformed our company into a pure play life science instrumentation company with competitive advantages across our portfolio.  This strategic shift will make Harvard Bioscience a larger company, less susceptible to fluctuations in academic research funding, with improved profitability on day one.  We believe this transformation will set our organization on the path for sustained top-line and bottom-line growth.  I am also proud to welcome the DSI team to Harvard Bioscience and we look forward to working together to increase shareholder value.  The future is truly bright for Harvard Bioscience.”

Source: Harvard Bioscience, Inc.