Brooks closes $79 million Nexus acquisition
Brooks Automation, Inc., a leading provider of automation, vacuum and instrumentation solutions, has announced the completion of its acquisition of Poway, Calif.- based Nexus Biosystems Inc., a leader in automated compound and sample management solutions for the life sciences industry.
CHELMSFORD, Mass.—Brooks Automation, Inc., a leadingprovider of automation, vacuum and instrumentation solutions, has announced thecompletion of its acquisition of Poway, Calif.-based Nexus Biosystems Inc., aleader in automated compound and sample management solutions for the lifesciences industry. The net cash purchase price for the transaction was $79million, and Brooks Automation also paid approximately $6.7 million for thevalue of Nexus' unrestricted cash at the close of the acquisition. Nexus generatedrevenues of $36 million for the twelve months ended June 30 of this year.
"We are very excited about joining the Brooks team, and weare also very much looking forward to joining with our sample managementcolleagues from RTS," said John Lillig, CEO of Nexus Biosystems, in a pressrelease about the deal. "Both Brooks and Nexus have been strong technologyinnovators. Combining the technological and global support strengths of our twocompanies will help to accelerate the ongoing product development, commercializationand customer support of our expanding sample management solutions."
Nexus' products include solutions for sample management,storage, retrieval, preparation and analysis, as well as proteincrystallography. The company has offices in the United States, Germany,Switzerland and Japan.
"Nexus represents an important next step in our strategy tobuild a meaningful position in a rapid, secular growth market. Together withour other recent acquisition, RTS Life Sciences, and our core technicalcompetencies at Brooks, we plan to build Brooks Life Science Systems into themarket and innovation leader in Biobanking and Compound Sample Management," Dr.Steve Schwartz, President & CEO of Brooks, said in a press release.
"Nexus has developed a proven technology position in theirsystems, consumables and service offerings. Combined with RTS they will havedeveloped the leading installed base of Automated Biobanks and Compound SampleManagement Systems placed in service over the past decade," Schwartz added.
Martin S. Headley, Executive Vice-President and ChiefFinancial Officer for Brooks Automation noted in a press release that Nexuspossesses "attractive financial attributes," which include a gross marginprofile as well as "modest fixed asset and working capital requirements." Healso noted that the company will be making "meaningful development expendituresin next generation automated sample management products over the next twelve tofifteen months that will moderate operate margins from the attractive levels weexpect to see thereafter."
"With Nexus' operations on the West Coast and meaningfulsales and service locations in Switzerland, Japan and Germany complementing ourexisting Life Science Systems direct channel presence on the East Coast and inthe U.K., we will have broad global reach," said Scwartz.
SOURCE: Brooks Automation, Inc. press release