Agilent invests in cancer diagnostics business

Agilent Technologies Inc. and EQT, the Sweden-based private equity group, have announced a definitive agreement for Agilent to acquire Dako, the Denmark-based cancer diagnostic company. The $2.2 billion acquisition (on a debt-free basis) is the largest in Agilent's history.

"In the rapidly growing diagnostics market, Dako's products and capabilities are a strategic complement to Agilent's existing offerings," said Bill Sullivan, Agilent president and chief executive officer. "Dako is one of the world's leading providers of cancer diagnostics tools, and together we will be able to develop a wider range of products that help in the fight against cancer."

"Agilent's strategy in acquiring Dako is about strengthening the company's presence in life science and about revenue growth, Dako employs extremely talented people with specialised expertise that we highly value. Their knowledge and experience will be very important as we move forward together."

Lars Holmkvist, CEO of Dako, said, "Our combined companies will have complementary strengths. Like Agilent, Dako has a long history as a leader in scientific advancement and a culture that values discovery and innovation. We believe that Agilent and Dako are a winning combination."

Dako provides antibodies, reagents, scientific instruments and software primarily to customers in pathology laboratories. It also collaborates with a number of major pharmaceutical companies to develop new potential pharmacodiagnostics, also called companion diagnostics, which may be used to identify patients most likely to benefit from a specific targeted therapy. The company’s products are sold in more than 100 countries, and in 2010 its annual revenue was approximately $340 million (USD). The company employs more than 1,000 people, primarily in Denmark, in Carpinteria, Calif. and other parts of the world.

The acquisition was expected to close within 60 days following the announcement on May 17, subject to the satisfaction of customary closing conditions.