Cellular Dynamics (ICEL) International to be Acquired by FUJIFILM Holdings Corp.

Shares of Cellular Dynamics International Inc. (ICEL) were trading up +8.56 or +107.81 percent to $16.50 in this morning's premarket after news that the company would be taken over by FUJIFILM Holding Corp. The deal, which is for cash is valued at $307 million. Cellular Dynamics stock closed at $7.94, up +0.13 or +1.66 percent in Friday's regular trading session.



Founded in 2004 by stem cell pioneer James Thompson, Madison, Wisconsin based Cellular Dynamics International Inc. develops and manufactures functional human cells in large quantities and to precise specifications.
The cells are created from human induced pluripotent stem cells (iPSCs) and are used for a variety of purposes such as testing drugs for safety, drug discovery and screening, stem cell banking and for researching and developing cellular therapies. The company owns two research facilities, one in Madison, Wisconsin and one in Novato, California. Cellular Dynamics International had their initial public offering in July of 2013 at $12 per share. The company had global revenues of $16.7 million in 2014 and employs 155 people.

Tokyo, Japan based FUJIFILM Holdings Corporation is a holding company for the Fujifilm Group, which has three operating companies: FUJIFILM Corp., Toyama Chemical and the Fuji Xerox Company. The company began as a film manufacturer and has expanded to include printing materials and equipment, office equipment for printing, as well as photographic devices such as optical devices, TV camera lenses, LCD materials and digital cameras. The company's focus has changed, however since the demise of conventional photography. FUJIFILM's priority business fields now include the manufacture of medical equipment, pharmaceutical products, cosmetics and nutritional supplements.

The acquisition, which was announced early this morning, will have Fujifilm pay $16.50 per share or about $370 million via an all cash tender offer which is due to commence no later than April 6th, 2015. The tender offer is to be followed by a second step merger. The offer price represents a premium of +108 percent over Cellular Dynamics stock closing price on Friday, March 27th.

Cellular Dynamics' Chairman and Chief Executive Officer Robert J. Palay said in the company's press release that, "CDI has become a leader in the development and manufacture of fully functioning human cells in industrial quantities to precise specifications. CDI and Fujifilm share a common strategic vision for achieving leadership in the field of regenerative medicine. The combination of CDI's technology with Fujifilm's technologies, know-how, and resources brings us ever closer to realizing the promise of discovering better, safer medicines and developing new cell therapies based on iPSCs.

Shigetaka Komori, Chairman and Chief Executive of Fujifilm stated that, "We are delighted to be able to pursue the business from drug discovery to regenerative medicine with CDI, which develops and manufactures iPS cells. We have optimal scaffolding material, 'recombinant peptides', for cell generation and technologies useful for regenerative medicines such as material science and engineering. Our group company, Japan Tissue Engineering, markets regenerative medicine products in Japan. By welcoming CDI to the Fujifilm Group and by combining the technologies and knowhow of both companies, we will seek synergies and efficiencies to be more competitive in the field of drug discovery and regenerative medicine.

Cellular Dynamics will continue to run operations from its two facilities in Madison, WI and Novato, CA as a wholly owned subsidiary of FUJIFILM Holdings Corporation. The deal has been approved by the boards of both companies and is expected to close by the second calendar quarter of 2015.

Other News About ICEL

Cellular Dynamics reports 4Q loss

Company reported a fourth quarter loss of -$5.8 million earlier this month.

Cellular Dynamics' iCell Hepatocytes Enable Malaria-in-a-Dish Studies

Company's human liver cells were used in a malaria-in-a-dish model for the testing of anti-malarial drug candidates.

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Published on Mar 30, 2015
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2016. Content published with author's permission.

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