Tecan to acquire SPEware Corporation, a leading provider for mass spectrometry sample preparation solutions

ID: 1455285
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(Thomson Reuters ONE) -
Tecan Group AG /
Tecan to acquire SPEware Corporation, a leading provider for mass spectrometry
sample preparation solutions
. Processed and transmitted by Nasdaq Corporate Solutions.
The issuer is solely responsible for the content of this announcement.

* Acquisition of US-based SPEware Corporation further expands Tecan''s
dedicated solutions offering into new market segment
* SPEware to become part of Tecan''s Life Sciences Business, leveraging Tecan''s
global presence and strong position in mass spectrometry sample preparation
automation platforms
* Over 70% of SPEware''s revenues are generated from smart consumables, thus
increasing Tecan''s overall recurring revenues
* Base consideration of USD 50.0 million (CHF 49.0 million)
* Valuation representing approximately three times expected fiscal year 2016
sales of SPEware; SPEware''s EBITDA margin exceeds Tecan''s
* Transaction anticipated to be immediately accretive to earnings per share
before transaction-related amortization
* Closing of the transaction expected within the coming weeks

Männedorf, Switzerland, August 31, 2016 - The Tecan Group (SIX Swiss Exchange:
TECN) announced today the acquisition of US-based SPEware Corporation (SPEware)
to further expand Tecan''s dedicated solutions offering into a new market
segment. SPEware is a leading provider for mass spectrometry sample preparation
solutions, with a focus on the North American market. SPEware will become a part
of Tecan''s Life Sciences Business, leveraging Tecan''s global presence, customer
base and strong position serving the market with automation platforms optimized
for sample preparation for mass spectrometry analysis. With over 70% of revenues
generated with smart consumables, the acquisition of SPEware will further expand
Tecan''s overall recurring revenues.



The base purchase consideration of USD 50.0 million (CHF 49.0 million) will be
fully paid in cash and represents a valuation of approximately three times
fiscal year 2016 sales of SPEware, while SPEware''s EBITDA margin is exceeding
Tecan''s level. An additional earn-out consideration of up to USD 10.0 million
(CHF 9.8 million) will be payable subject to the achievement of certain
performance-related targets over the next two years. The transaction is expected
to be immediately accretive to earnings per share (EPS) before transaction-
related amortization. The closing of the transaction is anticipated within the
coming weeks. Hence, Tecan does not expect a significant impact of the
acquisition on its 2016 financial results.

Tecan CEO Dr. David Martyr commented: "The entire SPEware team has done a great
job of developing and commercializing their proprietary solid phase extraction
technology. With SPEware''s current focus on North America, we are excited about
the opportunity to leverage Tecan''s global sales and service infrastructure to
build on that momentum and further accelerate growth. This transaction follows
very much the rationale of our acquisition of IBL International in 2014, which
supported our evolution into a solutions business for dedicated applications.
With SPEware''s consumable and dedicated instrument offering, we can now expand
our solution offering into the sample preparation for mass spectrometry market,
complementing the market for specialty immunoassays served by IBL International.
We very much look forward to welcoming the SPEware team into Tecan."

Phil Dimson, CEO and founder of SPEware, said: "We couldn''t be more excited to
join with the Tecan Group as this combination adds significant synergistic value
for our customers and employees. Tecan''s global market presence as a leader in
laboratory automation platforms, including in our core market, is the perfect
complement to SPEware''s smart consumables and devices for mass spectrometry
sample preparation solutions."

A leading provider for mass spectrometry sample preparation solutions
SPEware provides advanced sample preparation solutions to analytical
laboratories, by combining smart chemistry consumables with dedicated
instruments and modules to make liquid chromatography-mass spectrometry (LC-MS)
workflows more efficient. The overall market for these extraction technologies
expands with a mid single-digit percentage rate per year. SPEware has clearly
outgrown the market in recent years, due to its differentiated product offering
and to the underlying market trend of adoption of automated solid phase
extraction as the preferred sample preparation technique for high complexity
tests.

SPEware''s clients are mostly large reference labs and specialized laboratories
in North America that predominantly use SPEware''s solutions for toxicology
testing and other analyses of complex sample matrices such as urine or saliva.
Separation of targeted analytes from complex matrix components prior to
injection onto the LC-MS offers numerous advantages including improved assay
robustness and less instrument maintenance. SPEware''s proprietary micro-
particulate sorbent consumables for solid phase extraction offer important
advantages, including higher selectivity, reproducible separations and overall
data improvement. Workflows are also more automation friendly which offers the
additional potential of integrating SPEware''s automated positive pressure
processors into Tecan''s liquid handling workstations.

Established almost 20 years ago, SPEware is based in Baldwin Park, California
(USA), and has over 60 employees. The company operations are vertically
integrated with product development, columns packing, molding operation and the
manufacturing of dedicated hardware devices.

Additional information can be found on the SPEware webpage:
www.spewarecorporation.com

Achelous Partners, LLC, served as financial advisor to SPEware on the
transaction.

About Tecan
Tecan (www.tecan.com) is a leading global provider of laboratory instruments and
solutions in biopharmaceuticals, forensics and clinical diagnostics. The company
specializes in the development, production and distribution of automated
workflow solutions for laboratories in the life sciences sector. Its clients
include pharmaceutical and biotechnology companies, university research
departments, and forensic and diagnostic laboratories. As an original equipment
manufacturer (OEM), Tecan is also a leader in developing and manufacturing OEM
instruments and components that are then distributed by partner companies.
Founded in Switzerland in 1980, the company has manufacturing, research and
development sites in both Europe and North America and maintains a sales and
service network in 52 countries. In 2015, Tecan generated sales of
CHF 440 million (USD 459 million; EUR 411 million). Registered shares of Tecan
Group are traded on the SIX Swiss Exchange (TECN; ISIN CH0012100191).


For further information:

Tecan Group
Martin Braendle
Vice President, Communications & Investor Relations
Tel. +41 (0) 44 922 84 30
Fax +41 (0) 44 922 88 89
investor(at)tecan.com
www.tecan.com

Press Release:
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This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Tecan Group AG via GlobeNewswire






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Date: 08/31/2016 - 01:15
Language: English
News-ID 1455285
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