Acquisition a Positive Fit to Drive Growth

The recently completed acquisition of research reagents developer Australian TGR Biosciences (TGR), is expected to significantly contribute to the overall performance of the SYGNIS Group.

Dr. Heikki Lanckriet, CEO and CSO of SYGNIS, said: “The acquisition of TGR Biosciences with its complementary business portfolio is a perfect fit for SYGNIS and an important step in our ‘Grow, Buy and Build strategy’ – we are very excited about our joint future. Both, TGR Biosciences and the SYGNIS Group will benefit from increasing sales and cross selling synergies, which will further strengthen our market position and provide further opportunities for growth.”

The acquisition, priced in Australian Dollars at approximately EUR 10.1 million (net of cash acquired with the business) comprising cash, loan notes and a share based earn out was financed by the recent capital increase, where SYGNIS raised gross proceeds of EUR 4.2 million in a private placement with institutional investors. Additionally, SYGNIS obtained a debt finance in the amount of EUR 2 million, retaining the right to exchange the debt finance into a mandatory convertible bond with additional option rights for approximately 1.4 million shares. The volume of the convertible bond and the conversion price will depend upon market conditions at the time, if the right is utilised by SYGNIS, which, it was suggested, is likely.

TGR’s product portfolio, including patented best-in-class protein capturing technology, fits with SYGNIS’ range of products and services to support the immunology, genomic and proteomic markets. The acquired technology and R&D facilities will be fully integrated into the parent group and will trade under the Expedeon brand in the near future.