Corgenix Medical Corp., the Broomfield company
developing a high-profile quick Ebola test, will be acquired by Orgentec Diagnostika, a German maker of diagnostic tools.
Shareholders will receive 27 cents cash for each share of common stock they own in a deal that values the company at about $16 million. The per-share price is a 29 percent premium to the average share price of 21 cents in the 90 days prior to Corgenix's announcement in March that it was exploring strategic alternatives.
"After a robust auction process and a thorough review of all alternatives, including staying as an independent company, the company's board of directors strongly believes that acceptance of the Orgentec offer is the best choice to maximize our shareholders' value," CEO Douglass Simpson said in a written statement Thursday.
The company is expected to become an Orgentec subsidiary and remain headquartered in Broomfield.
Corgenix, founded in 1990, develops diagnostic products ranging from tests to determine aspirin's effectiveness in individual humans to assays that can rapidly detect viral hemorrhagic fevers such as Lassa.
In late June, Corgenix was awarded a $2.9 million grant from the National Institutes of Health to further develop a prototype diagnostic test for the Ebola virus. The project's timeline is three years.
The sale, which requires shareholder approval, will allow the combined company to offer more than 350 tests, primarily enzyme-linked immunosorbent assays, that diagnose a range of conditions, including autoimmune, vascular, infectious disease and organ function, Corgenix officials said.
The deal is Orgentec's first major step toward expanding its position in the global specialty diagnostics market since it partnered with Water Street Healthcare Partners, a Chicago investment firm, in May.
"It will give us an immediate direct presence in the United States, where Corgenix is highly regarded for its quality and innovation," Orgentec CEO Werner Hofacher said in a written statement.
The combined company will serve hospitals and reference laboratories throughout Europe and the U.S., as well as the emerging markets of Asia, Latin America and the Middle East, according to Corgenix officials.