Vitrolife is acquiring the business in Conception Technologies, USA. This means that Vitrolife will broaden their IVF product portfolio, increase cost-efficient production capacity and increase its market share, above all in North America.

"The broadening of the product portfolio strengthens our product offering. Through our newly expanded sales organization we are able to increase the sales of Conception Technologies products globally. This gives us considerable revenue synergies, which is completely in line with our strategy of exploiting the investments we have made in a global market and sales organization. Vitrolife will also strengthening its market share in North America, the market Conception Technologies' products primarily has been sold" says Nils Sellbom, Sales and Marketing Director at Vitrolife.

 Conception Technologies is based in San Diego, California. The company was formed in 1992 and has approximately 30 employees. Sales are just over USD 4 million with a product portfolio of products for in-vitro fertilization, and in-house cost-effective production of advanced pipettes for micromanipulation, which complements the series of pipettes that Vitrolife already has.

 The business in Conception Technologies will be integrated with Vitrolife's subsidiary Vitrolife Inc, which will thus have two production facilities in the USA, one in Denver, Colorado, and one in San Diego, California. It is estimated that the acquisition will have been completed before the end of October.

 Vitrolife is acquiring the business in Conception Technologies for a purchase price of approximately USD 5 million. The acquisition is being financed in its entirety through bank loans in USD. Vitrolife does not expect the acquisition to have any noticeable effect on earnings per share for 2010 but the business will contribute positively to profits starting in 2011.

 "This expansion of Vitrolife's product portfolio within the fertility area means that we are now decidedly closer to our strategic objective of having a complete line of advanced products for IVF treatment, where we can without exception offer clinics and patients guaranteed quality and functionality in order to optimize the chances of successful fertility treatment," says Magnus Nilsson, CEO of Vitrolife.

October 12, 2010

Gothenburg

 

Magnus Nilsson

CEO