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Portfolio Company, Innova Biosciences, valued at €12.8 Million to be Acquired by Sygnis AG

May 08, 2017

Innova Partnerships' portfolio company, Innova Biosciences Ltd, is to be acquired by German listed company Sygnis AG [LIO1.DE] at a €12.8M valuation.

Innova Biosciences develops, manufactures and commercialises labelling reagents that are marketed worldwide by its direct salesforce, and through a well-established distribution network. The purchase price consists of a cash payment of EUR 8 million, as well as 2 million shares of SYGNIS AG to be issued by way of a capital increase against contribution in kind, and up to a further 1.5 million shares which will be issued through a mandatory convertible bond if certain turnover targets are met within a period of two years.

The proposed acquisition is to be financed by way of a rights issue and a private placement excluding pre-emptive rights with total proceeds of up to EUR 10 million.

The acquisition of Innova Biosciences and their best-in-class labelling technology adds a complementary portfolio to the SYGNIS genomics and proteomics workflow. The ability to label molecules for detection, purification or quantification is a common challenge in modern molecular biology that will enable SYGNIS to provide an improved customer offering.

Dr. Heikki Lanckriet, Co-CEO and CSO of SYGNIS, said: “Innova [Biosciences] is a natural fit with the SYGNIS Group. Its cutting-edge labelling technology, market knowledge, innovation and creativity is highly complementary and will add significant value to the SYGNIS Group and its customers. Labelling is a central application at several stages in both proteomics and genomics workflow, hence the Innova [Biosciences] product portfolio fits perfectly with our customer base. We are excited to extend our product offering with the high quality products developed and manufactured by Innova [Biosciences]. We also welcome a highly skilled and experienced team to the group and are delighted that Nick Gee will join our management team as Chief Technical Officer.”

Pilar de la Huerta, Co-CEO and CBDO of SYGNIS, commented: “Innova [Biosciences] is a profitable company with one third of its revenues coming from the US and UK markets respectively. Innova [Biosciences]’ strong marketing capabilities and topnotch management complement SYGNIS’ existing capabilities and will help us to deliver on our international commercialication strategy, driving revenues and enhancing profitability. We expect our joint pro-forma revenues for 2017 to exceed EUR 10 million, with strong upside potential in 2018.”

Dr. Nick Gee, CEO and CSO of Innova Biosciences, added: “SYGNIS offers a great platform to grow our business internationally and will give us access to new target audiences and markets. SYGNIS’ and Innova [Biosciences]’ technologies are complementary and can be sold through the same sales channels. We were particularly attracted by the sales reach of SYGNIS which will enable us to grow our business even more quickly. The proximity of our locations here in Cambridge also makes achieving synergies readily attainable. We are delighted to be part of a larger, stronger team.”

Innova Partnerships CEO, Professor Steve Howell commented, “We are delighted to see the planned acquisition of our very first portfolio company, Innova Biosciences Ltd, by Sygnis AG. We have supported and helped Innova Biosciences grow from a start up through to this planned exit. During this time, the team at Innova Biosciences have developed world class technologies which are sold around the world. The match up between Sygnis and Innova Biosciences is very synergistic and should result in enhanced and significant growth for both.

This is Innova Partnerships’ second exit from our own portfolio of investment companies and we anticipate building on this as other companies we have invested in continue to grow and develop.”