Cancer Genetics To Buy Gentris

(RTTNews) - Cancer Genetics, Inc. (CGIX) said Monday that it has signed a non-binding Letter of Intent to acquire privately held Gentris Corp., a provider of pharmacogenomics solutions, biomarker testing and biorepository services, for about $4.75 million, comprised of $3.25 million in cash, $1.5 million in Cancer Genetics stock as well as additional performance-based earnouts of up to $1.5 million.

The deal, which will be treated as an asset purchase, is expected to close during the third quarter of 2014 and is subject to negotiation and execution of a definitive acquisition agreement and related documents, customary closing conditions and government approvals.

Under the terms of the LOI, it is contemplated that Gentris, which is headquartered in Morrisville, North Carolina and has a U.S. FDA-compliant satellite laboratory in Zhangjiang Hi-Tech Park, Shanghai, China, will become fully integrated into Cancer Genetics. Over 40 employees of Gentris, including the founder, will become employees of Cancer Genetics. Gentris founder Michael Murphy will serve as General Manager during integration of the Raleigh facility and Dr. Howard McLeod, who is Gentris' Board Member and Director, will join the Cancer Genetics Scientific Advisory Board.