Many Texas companies are involved in acquisitions and mergers with other companies nationally and worldwide. A company will often seek out others that can fill a void or allow for improvement in a certain niche of its activities. A recent transaction in another state is indicative of small company acquisitions that regularly take place. Business law attorneys are an integral part of the professional team that is necessary to carry the transaction through to completion.
The purchaser is Genoptix, a diagnostics laboratory that specializes in clinical oncology. The company has announced the purchase of Rosetta Genomics for $10 million. Genoptix intends to broaden its oncology diagnostics capacities, with emphasis in the solid tumor area.
Genoptix also announced that it was securing Rosetta’s micoRNA-based technology, which will be incorporated into its oncology portfolio. Genoptix announced that it will provide financing of up to $1.8 million to Rosetta to fund Rosetta’s operations during the transition. Sometimes, a company will go outside of its own specific industry to branch out into a new area of business activity, but this transaction is an example of a purchase designed to build on the basic business that the company is now conducting.
Genoptix, which is privately owned, was itself purchased earlier in 2017 by an east coast management group. Rosetta, on the other hand, has been trading on the Nasdaq capital market, but that status will cease after the purchase is completed. The purchase is thus geared toward obtaining greater versatility in oncological diagnostics, along with the acquisition of specialized technology owned by Rosetta.
The boards of both companies have approved the transaction. Business law attorneys who are experienced in acquisitions and mergers will be intimately involved in steering the transaction to successful completion during the first quarter of 2018. In Texas, similar transactions are regularly consummated in all industries and businesses, including between both publicly traded and privately-owned companies.
Source: sdbj.com, “Genoptix to Buy Rosetta Genomics for $10M“, Jared Whitlock, Dec.18, 2017