Sygnis plans to acquire Expedon to become a leading player in Life Sciences
Sygnis, a genomics research company which has its headquarters in Germany and Spain eyed on the proteomics market by developing Double Switch, a tool to detect and quantify protein interaction.
Now, Sygnis is making a very significant move towards proteomics. It is merging with Expedeon, a spin-off of Cambridge University which is developing innovative products for several key laboratory procedures in the field.
Proteomics is the study of proteins present in an organism and is similar to genomics which is the study of genes. Though genomics and proteomics are different markets, they are both part of molecular biology research. By merging, the two companies’ portfolio is highly complementary and will be able to cover all users in the field – from universities to CROs and Pharma.
There’s no overlap in the products developed by the two companies, making the merger more valuable and easier – i.e. there is no need to ‘kill off’ certain products or operations.
However, there’s more in the deal than just the ‘perfect’ portfolio. Expedeon is already profitable, with revenues around €3.5M. It
has a loyal customer base and has important sales channels.With the merger, Sygnis gets the direct sales team of Expedeon, which grants it a strong presence in two key markets – UK and US.
Expedeon has a strong presence in the US, with an established base in California. In 2011, it has also acquired a Tennessee-based company (Protein Discovery). In fact, the US is the source of over 30% of Expedeon’s revenues.
The acquisition could also provide an entry to Asian markets. Expedeon has a sales office in Singapore, and has distribution agreements with Sigma,a giant supplier in life sciences and Tanon, a major player in the Chinese market.
For Expedeon, the acquisition will not only mean an access to the genomics market and increased visibility, but also access to the markets. Sygnis is also currently listed on the Frankfurt Stock Exchange (Germany).
