Gen-Probe offers to buy Innogenetics

Gen-Probe Inc. said Tuesday it started a cash tender offer to buy Belgian molecular diagnostics company Innogenetics for about $215 million euros ($334 million).

Gen-Probe expects to fund the deal with cash on its balance sheet.

Innogenetics shareholders will receives $6.10 euros per share ($9.48). The per share offer is a 7 percent premium to Innogenetics closing stock price of $5.71 euros on Monday.

It is a 6 percent premium to $5.75 euros per share offer made by Solvay Pharmaceuticals SA's for the company in April.

Gen-Probe Chairman and Chief Executive Hank Nordhoff said in a statement that the deal will give the company more access to the European market, which is growing at a more rapid pace than the U.S.

The transaction is expected to create the world's biggest standalone molecular diagnostics company with full-year pro forma sales of more than $500 million.

The deal is anticipated to be slightly dilutive to Gen-Probe's 2008 adjusted earnings per share and be neutral or slightly add to 2009 adjusted earnings.

Gen-Probe expects the offer to close in the fourth quarter.