Martek Biosciences Corporation has signed a definitive agreement to acquire OmegaTech, Inc., a privately held docosahexaenoic acid (DHA) producer located in Boulder, Colorado. The stock-for-stock transaction is expected to close within four to six weeks.

"OmegaTech's low-cost, patented source of DHA, talented workforce and experience in the food, beverage and nutrition fields make it an excellent complement to Martek," stated Henry Linsert Jr., CEO of Martek. "The acquisition of OmegaTech provides Martek access to the anticipated $1 billion global food and beverage DHA market."

The essential omega-3 fatty acid nutrient, docosahexaenoic acid (DHA), is produced to very high concentrations in a pure-culture fermentation by a golden marine microalgae - nature's original DHA source. DHA provides a broad range of health benefits, including reduced risk of cardiovascular disease, improved maternal health, immune system health and infant neural development.

OmegaTech's president & CEO, Mark Braman, stated, "In addition to the incremental revenue streams and penetration of new markets, the combination of Martek's expertise in infant nutrition and OmegaTech's technology and experience in the food and nutrition industries positions Martek as a leading provider of vegetarian DHA products for both the infant formula and adult markets."

The purchase price of the acquisition is approximately 1.8 million shares of Martek common stock with a current market value of approximately $50 million. An additional maximum amount of 1.4 million shares having a current market value of approximately $40 million will be payable over the next two years if four milestones are met. Two milestones are tied to sales and gross profit margin objectives, and two relate to regulatory and labeling approvals.