Harvard Bioscience has entered into a merger agreement to acquire 100% of the outstanding stock of Data Sciences International (DSI) for approximately $70 million.

DSI,a life science research company, is a leader in physiologic monitoring focused on delivering preclinical products, systems, services and solutions to its customers. For the trailing 12 months ending December 31, 2017, DSI had approximately $44 million in revenue.

Harvard Bioscience expects the transaction to generate approximately $2.5 million to $3.5 million in combined revenue and cost synergies 12 months following closing and increase over the first 3 years following closing.

In addition to that merger, Harvard Bioscience also completed the sale of its wholly-owned subsidiary Denville Scientific to Thomas Scientific for approximately $20 million, which includes a $3 million earn-out provision. 

Denville is a Charlotte, North Carolina-based life science research consumables distributor.  In 2017, Denville contributed approximately $24.5 million in revenue to the Company.  Denville was no longer central to the Company’s strategy and the disposition allows the Company to focus on and add to its primary and more profitable instrumentation business.

“This is a momentous day for Harvard Bioscience,” said Jeffrey A. Duchemin, Harvard Bioscience’s president and chief executive officer.  “Our entire organization has worked tirelessly over the last three years to build a foundation to be able to acquire and integrate a company like DSI. With the sale of Denville, and upon the closing of the DSI acquisition, we will have transformed our company into a pure play life science instrumentation company with competitive advantages across our portfolio.  This strategic shift will make Harvard Bioscience a larger company, less susceptible to fluctuations in academic research funding, with improved profitability on day one.”

As a result of these transactions, management expects Harvard Bioscience’s fiscal 2018 annual revenue to be between $118 million and $123 million. 

The acquisition of DSI, which will be financed through a combination of debt, the proceeds from the sale of Denville, and cash on hand, is expected to close by the end of January or early February 2018.  In connection with the closing of the Denville and DSI transactions, the Company’s existing credit facilities will be terminated, with the term loan of approximately $12 million in outstanding principal being paid in full, and they will enter into a new term loan and an up to $25 million revolving line of credit.