Safeguard Scientifics, a New York-listed life sciences and medical technology company, will receive $145m from the sale of its partner company Clarient to industrial conglomerate General Electric’s subsidiary.
GE Healthcare will pay about $580m for Clarient at $5 per common share and $20 per preferred share.
Safeguard floated Clarient on the Nasdaq stock exchange in 1997 but retained its partnership interest.
John Dineen, executive president of GE Healthcare, said: "Adding Clarient’s technology to our portfolio will accelerate our expansion into cancer diagnostics and therapy selection tools, while enhancing our diagnostic and life sciences offerings. We can build a $1bn-plus business by developing integrated diagnostic solutions for cancer and other diseases."
The global demand for cancer-profiling products and services is predicted to grow from $15bn last year to an estimated $47bn by 2015 and, since 2005, Clarient has posted a 68% compounded annual growth rate.