Mesa Labs Closes Acquisition of Agena Bioscience

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[{"type":"text","content":"LAKEWOOD, Colo., Oct. 20, 2021 (GLOBE NEWSWIRE) -- Mesa Laboratories, Inc. (NASDAQ:MLAB) today announced that it has completed the previously announced acquisition of Agena Biosciences, Inc. With this highly strategic acquisition, Agena’s innovative approach to molecular diagnostics is now paired with Mesa’s proven approach to continuous improvement and operational and commercial efficiency. Together, Mesa and Agena will join to pursue the common purpose of Protecting the Vulnerable®. Agena is a leading clinical genomics tools company that develops, manufactures, and supplies highly sensitive, low-cost, high-throughput, genetic analysis solutions to clinical labs and development partners globally. “The acquisition of Agena is another critical step in redirecting the strategic trajectory of Mesa toward higher growth applications within the regulated segments of the life sciences tools market. With this acquisition, we expect that over 90% of future revenues will be generated from sales to biopharma, medical device, and healthcare service verticals,” said Gary Owens, President and Chief Executive Officer of Mesa. Mesa establishes a presence in San Diego, where Agena’s headquarters and facility will continue to be maintained, as well as strengthening Agena’s other global offices and brands. Agena will operate as a distinct operating segment under Mesa and its results will be reported as part of a newly-created reportable segment, Clinical Genomics. Excluding the impact of COVID-19 related revenues, Agena is expected to add between $63 million to $67 million of revenues during the first 12 months of ownership (of which approximately 65% is expected to be recurring in nature), deliver high single digit organic revenues growth over the next several years and excluding the impact of purchase accounting, generate gross profit percentages in the mid to high 60’s. Additionally, excluding the impact of COVID-19 related revenues, purchase accounting and integration expenses, we expect adjusted operating income1 as a percentage of revenues to approach 20% for the same first 12 months of ownership. Additionally, Agena is expected to deliver an additional $3 million to $5 million of COVID-19 related revenues during the first year of ownership at approximately the same gross profit percentages stated above. The COVID-19 revenues are expected to...

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