Affymetrix Inc., (AFFX) said Monday that it has completed the acquisition of privately-held eBioscience Holding Company, Inc. enhancing its product portfolio and addressable markets by more than $2.5 billion per year.
As per that agreement, Affymetrix paid about $315 million in cash for the acquisition. This was funded through a new senior secured credit facility, an offering of convertible notes and other available cash resources.
Tim Barabe, executive vice president and chief financial officer of the company, said, "The combination is expected to be accretive to gross margins and operating income in fiscal 2012."
Pertaining to the acquisition, Affymetrix's Compensation Committee approved equity incentive awards to 278 eBioscience employees as inducement to join Affymetrix. About 1.32 million shares of Affymetrix common stock may be issued to these new non-executive employees under the awards.
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