Siemens enters in-vitro diagnostics market with acquisition of
Diagnostic Products Corporation
2 May 2006
Erlangen, Germany & Los Angeles. Siemens and Diagnostic Products
Corporation (DPC) have entered into a merger agreement under which Siemens
will acquire DPC for approximately $1.86 billion.
DPC is one of the global leaders in immunodiagnostics, focusing on
developing, manufacturing and distributing automated body fluid analyzers
and tests, such as those related to cancer and cardiac disease, as well as
hormone and allergy conditions. It is present in more than 100 countries.
DPC reported sales of $481 million and income from operations of $96 million
for fiscal year 2005.
In the merger, each shareholder of DPC will receive $58.50 (in cash) per
share for each share of DPC stock then held, and DPC will become a wholly
owned subsidiary of Siemens Medical Solutions USA, Inc. The completion of
the merger is subject to approval by DPC's shareholders, receipt of
regulatory approvals and other customary closing conditions. The parties
anticipate that the shareholders' meeting will be held in mid 2006. The
Board of Directors of each company has approved the agreement.
Through this acquisition, Siemens Medical Solutions intends to expand its
existing healthcare solutions portfolio and further the company's objective
to enable early and specific diagnosis and individualized patient therapy.
Siemens bridges the gap between in-vivo and in-vitro diagnostics and brings
together a unique blend of expertise and technologies in diagnostic imaging,
healthcare information technology (IT), molecular biology and biochemistry
to drive and lead the advancement of personalized healthcare across the
globe. The acquisition of DPC is a major milestone in the development of
integrated, clinical workflow-oriented solutions that will improve the
quality while increasing the efficiency of patient care.
"We are impressed by DPC's track record in developing a globally leading
immunodiagnostics business and by the quality of its people. The potential
is huge to drive ground-breaking innovations by combining DPC's in-vitro
diagnostics leadership with Siemens' leading position in medical imaging and
healthcare IT solutions," said Erich R. Reinhardt, president and CEO of
Siemens Medical Solutions of Siemens AG (NYSE: SI). "Together, both
companies will be empowered to continue to revolutionize the prevention,
diagnosis, treatment and management of disease."
Founded in 1971, DPC is the world's leading independent producer of
immunodiagnostic products. The company's diagnostic tests supply information
vital to the detection and management of disease, including
adrenal/pituitary dysfunction, allergy, anaemia, bone metabolism
disturbances, cancer, cardiovascular disease, diabetes and reproductive and
"We believe that this merger with Siemens will be a very positive
development for the future of our employees, customers and the company as a
whole. This merger will allow us to continue on our current rapid course of
development while also providing DPC access to the resources and support of
a recognized leader in the delivery of integrated healthcare solutions,"
said Michael Ziering, CEO of DPC. "Siemens Medical Solutions is a perfect
match for DPC in terms of corporate philosophy, business practice and future
direction," added Ziering.