Safeguard Scientifics, Inc. said that its partner company, Crescendo Bioscience, Inc., signed an amended agreement to be acquired by Myriad Genetics, Inc. for $270 million, in cash, minus $25 million for the repayment of a loan made to Crescendo by Myriad in 2011 and subject to further adjustment for Crescendo's cash, other indebtedness, working capital and other amounts to be determined in accordance with the acquisition agreement.
In a release, Safeguard said that the transaction is expected to close in the fiscal quarter ending March 31, pending satisfactory completion of customary closing conditions and regulatory approval. Safeguard said that it expects to receive approximately $40 million in aggregate cash proceeds pending final closing calculations. Safeguard has deployed $11 million in Crescendo since December 2012 and has a 13 percent primary ownership position.
"Crescendo's first and only multi-biomarker blood test for rheumatoid arthritis (RA), VectraTM DA, has the opportunity to help the 1.5 million people in the United States and more than 4 million worldwide more accurately monitor their RA and make informed treatment decisions together with their physicians," said Gary J. Kurtzman, MD, Managing Director, Healthcare at Safeguard and chairman of the board at Crescendo. "We are excited by the opportunity that lies ahead for the team at Crescendo. The company's mission to significantly improve the treatment of RA will accelerate as part of Myriad, which is one of the world's leading molecular diagnostics companies."
"Safeguard begins 2014 with tremendous momentum, having recently announced exits transactions for Safeguard's partner companies Alverix, Inc., NuPathe Inc., ThingWorx, Inc., and now Crescendo Bioscience," said Stephen T. Zarrilli, President and CEO at Safeguard. "We continue to build a robust pipeline of new and exciting opportunities while we are equally focused on identifying well-timed exits to maximize value for our shareholders."
Crescendo's advisor on the transaction was Perella Weinberg Partners, and Cooley provided legal representation.
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