Novartis To Acquire Genoptix

A merger agreement between Novartis and Genoptix is expected to be performed within the first half this year.

Novartis has entered into a merger agreement to acquire Genoptix, Inc. Under the terms of the merger agreement, Novartis will start a full cash tender offer for all outstanding shares of common stock of Genoptix at $25 per share, giving the merge an equity value of approximately $470 million and an enterprise value of $330 million.

The cash offer price represents a premium of 27% premium over Genoptix' closing price from January 21, 2011. The transaction is expected to close within the first half of 2011.

Genoptix was founded in 1999 and is now a leading specialized laboratory service provider for physician customers, community-based hematologists and oncologists.