Intrexon Corp., a leader in synthetic biology, announced July 2 it has entered into a definitive agreement to acquire Trans Ova Genetics LC, an provider of bovine reproductive technologies.
Trans Ova will become a wholly owned subsidiary of Intrexon under the leadership of current president Dr. David Faber and his current management team, the announcement said.
Over the past five years, Trans Ova has doubled its revenues and become the largest producer and supplier of bovine embryos in the U.S. Intrexon and Trans Ova intend to build upon Trans Ova's current platform with new capabilities to allow for even higher levels of delivered value to dairy and beef cattle producers, Intrexon announced.
"Intrexon's mission is consistent with our own as we have sought to enable efficient, high-quality food production that supports the necessities of a growing global population in a sustainable way," Faber said. "We believe our advanced bovine reproductive technologies, including embryo transfer and in vitro fertilization, integrated with Intrexon's capabilities, are well-suited to provide multiple solutions for further advancing food animal genetics."
The acquisition of Trans Ova will also broaden Intrexon's reach in animal health and productivity. In December 2013, Intrexon and OvaScience, a life sciences company focused on the discovery, development and commercialization of new treatments for infertility, established a joint venture called OvaXon to create new applications for reproductive technologies to improve human and animal health. In connection with the proposed transaction, OvaXon which is developing applications to advance animal breeding, will license its technology to Trans Ova.
Pursuant to the definitive agreement between Intrexon and Trans Ova, Trans Ova stockholders will receive approximately $60 million in upfront cash, $30 million in Intrexon common stock and deferred payments of up to $20 million. Trans Ova generated revenues of $63.3 million and net income of $4.87 million in fiscal 2013. Consummation of the transaction, anticipated in the third quarter, is subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.