Qiagen to merge with Digene

Qiagen is to merge with Digene in a move that is set to expand its testing services for cervical cancer and sexually transmitted diseases.

It is thought the transaction, which has been universally approved by boards of directors at both companies, will lead to revenues of more than $800 million (£402.9 million) in 2008.

Shareholders may be interested to learn that Qiagen shareholders will own about 78 per cent of the combined company on a fully diluted basis, with Digene shareholders owning about 22 per cent.

Peer M Schatz, chief executive officer of Qiagen, commented: "The strategic rationale for this transaction is compelling as it combines Qiagen’s leading technology portfolio and our breadth of molecular diagnostic tests with Digene’s leadership in what is seen as the fastest-growing segment of molecular diagnostics."

He added that the transaction will increase the value of shareholder stock "significantly" and that the joint platform will create a platform for next-generation molecular diagnostic products.

Qiagen supplies diagnostic kits, tests and assays for diagnostic purposes and provides technologies for pre-analytical sample preparation and molecular diagnostics solutions.