BioLife Solutions to Buy SciSafe in $30 Million Deal

BioLife Solutions (NASDAQ: BLFS) is starting the week with a bang. On Monday morning, the company announced it has signed a definitive agreement to purchase privately held SciSafe. The price is $30 million, which will be paid half in cash and half in newly issued BioLife common shares.

SciSafe's current investors also will be eligible for up to 626,000 additional shares if the assets from the business hit certain annual revenue milestones. The incentive plan will be in force for a period of four years, but BioLife did not provide any further details about the milestones to be hit. At BioLife's current share price, 626,000 shares would be worth just under $17 million.

In the wake of the announcement, BioLife's stock was trading down marginally, yet still outperforming the top equity market indexes.

Gloved hand gripping beaker filled with U.S. currency, with currency also underneath the beaker.

Image source: Getty Images.

Investors might feel that the company, which specializes in products that are used in a fairly wide range of cell and gene therapies, is buying quite a complementary asset. SciSafe provides biological and pharmaceutical storage targeted at the same pool of clients as its soon-to-be owner, in addition to top pharmaceutical companies.

BioLife CEO Mike Rice said that the deal "enables BioLife to offer even more value to our cell and gene therapy customers through an established business with an excellent reputation, marquee customers and seasoned team."

"Through SciSafe, we are accelerating profitable growth by expanding into the high growth biostorage segment with a robust quality system, a scalable business model and strong financial performance," he added.

BioLife said it expects the absorption of SciSafe will contribute $1.8 million to its fourth-quarter revenue; that figure should tally $9 million for the entirety of 2021. SciSafe is anticipated to be accretive to non-GAAP (adjusted) net income beginning next year.

10 stocks we like better than BioLife Solutions
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and BioLife Solutions wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks


*Stock Advisor returns as of August 1, 2020


Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Latest Markets Videos

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More