Safeguard Scientifics Partner Company Crescendo Bioscience to Be Acquired by Myriad Genetics
Safeguard expects to realize approximately $40 million in aggregate cash proceeds
WAYNE, Pa.--(BUSINESS WIRE)--Safeguard Scientifics, Inc. (NYSE:SFE) today announced that its partner company, Crescendo Bioscience, Inc. (“Crescendo”), signed an amended agreement to be acquired by Myriad Genetics, Inc. (NASDAQ:MYGN) for $270 million, in cash, minus $25 million for the repayment of a loan made to Crescendo by Myriad in 2011 and subject to further adjustment for Crescendo’s cash, other indebtedness, working capital and other amounts to be determined in accordance with the acquisition agreement. The transaction is expected to close in the fiscal quarter ending March 31, 2014, pending satisfactory completion of customary closing conditions and regulatory approval. Safeguard expects to receive approximately $40 million in aggregate cash proceeds pending final closing calculations. Safeguard has deployed $11 million in Crescendo since December 2012 and has a 13% primary ownership position.
“We are excited by the opportunity that lies ahead for the team at Crescendo. The company’s mission to significantly improve the treatment of RA will accelerate as part of Myriad, which is one of the world's leading molecular diagnostics companies.”
“Crescendo’s first and only multi-biomarker blood test for rheumatoid arthritis (RA), VectraTM DA, has the opportunity to help the 1.5 million people in the United States and more than 4 million worldwide more accurately monitor their RA and make informed treatment decisions together with their physicians,” said Gary J. Kurtzman, MD, Managing Director, Healthcare at Safeguard and chairman of the board at Crescendo. “We are excited by the opportunity that lies ahead for the team at Crescendo. The company’s mission to significantly improve the treatment of RA will accelerate as part of Myriad, which is one of the world's leading molecular diagnostics companies.”
“Safeguard begins 2014 with tremendous momentum, having recently announced exits transactions for Safeguard’s partner companies Alverix, Inc., NuPathe Inc. (NASDAQ:PATH), ThingWorx, Inc., and now Crescendo Bioscience,” said Stephen T. Zarrilli, President and CEO at Safeguard. “We continue to build a robust pipeline of new and exciting opportunities while we are equally focused on identifying well-timed exits to maximize value for our shareholders.”
Crescendo’s advisor on the transaction was Perella Weinberg Partners, and Cooley, LLP provided legal representation.
About Safeguard Scientifics
For 60 years, Safeguard Scientifics, Inc. (NYSE: SFE) has been synonymous with entrepreneurship and innovation. Founded in 1953 and based in the Greater Philadelphia area, Safeguard has a distinguished record of building market leaders by providing capital and operational support to entrepreneurs across an evolving and innovative spectrum of industries. Today, Safeguard targets healthcare and technology companies in medical technology such as devices and diagnostics, healthtech, specialty pharmaceuticals, financial technology, digital media, and Enterprise 3.0. www.safeguard.com.
Join the Conversation
Except for the historical information contained herein, statements in this release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include, among others, the Company’s ability to make good decisions about the deployment of capital, the fact that our partner companies may vary from period to period, the Company’s substantial capital requirements and the absence of liquidity from our partner company holdings, the Company’s inability to obtain maximum value for our partner company holdings, market valuations in sectors in which our partner companies operate, the Company’s inability to control our partner companies, the need to manage assets to avoid registration under the Investment Company Act of 1940, risks associated with our partner companies, and other uncertainties described in the Company’s filings with the Securities and Exchange Commission. Many of these factors are beyond the Company’s ability to predict or control. As a result, past financial performance should not be relied on as an indication of future performance. The Company does not assume any obligation to update any forward-looking statements or other information in this press release.