Partner Company Clarient (Nasdaq: CLRT) to be Acquired by GE Healthcare for $587 Million
Posted by | October 22, 2010
At Safeguard Scientifics, our strategy is to provide growth capital for entrepreneurial and innovative life sciences and technology companies, build value in those companies and maximize that value through a well-timed exit. Today’s announcement that partner company Clarient, Inc. (Nasdaq: CLRT) has agreed to be acquired by GE Healthcare, a unit of General Electric Company (NYSE: GE), for $587 million or $5 per common share is a great illustration of our strategy in play. The completion of the transaction is subject to certain conditions, but is expected to close in late 2010 or early 2011. Safeguard is expected to receive net sale proceeds of approximately $145 million.
This transaction underscores Safeguard’s ability to identify and build value in companies with high-growth potential, ultimately driving shareholder value. Throughout Clarient’s transformation, Safeguard worked as an active partner to support Clarient’s growth. Safeguard’s support has taken many forms, including: initial and follow-on rounds of equity capital, mezzanine debt facilities, lines of credit guarantees, executive management recruitment, sales and marketing expansion, facilities project management, strategic communications and partnerships. As a result, we have enhanced Clarient’s financial strength and developed alliances and syndication partnerships with top-tier partners that have set the stage to realize value through this well-timed exit with GE Healthcare.
Our congratulations go out to Clarient’s CEO Ron Andrews and his team, who have built an incredible company and who have leveraged our support and resources to grow from an $11 million in 2005 to a projected $115 million revenue company in 2010. But, we feel a similar sense of accomplishment by seeing our patient approach and wide-ranging strategic, financial, and operational support drive Clarient to be the innovative, well-positioned, fast-growing company that it is today.
