Molecular Devices Corporation announced that it has entered into a definitive agreement to acquire Axon Instruments, Inc for approximately U.S. $70 million in cash and approximately U.S. $70 million in Molecular Devices common stock (based on a current average stock price).

In addition, Molecular Devices will assume Axon's approximately U.S. $29 million in cash and marketable securities. This strategic transaction would expand Molecular Devices' product portfolio with systems for cellular neurosciences and genomics and combine complementary product lines in the fast-growing areas of high throughput imaging and electrophysiology. Among the expected benefits of the acquisition are product development synergies and improved distribution of Axon's products through Molecular Devices' worldwide sales and marketing organization.

Commenting on the transaction, Dr. Joseph Keegan, president and chief executive officer of Molecular Devices, said, "This acquisition is an exciting opportunity for Molecular Devices to broaden our footprint in our core drug discovery and life sciences markets and further strengthen our technology base. Both Molecular Devices and Axon possess world-class engineering and longstanding track records for delivering innovative products. Together, we would have an exceptional capability to provide enabling technology in areas of great importance to pharmaceutical and life sciences customers, including genomics, imaging, and the screening of GPCRs, kinases and ion channels."

Dr. Alan Finkel, chief executive officer of Axon, added, "Molecular Devices' technological expertise, market presence, and excellent reputation make it an ideal partner for Axon. This combination would enhance the visibility of Axon's products and accelerate the development of innovative new products, particularly in the areas of imaging and ion channel screening." After the closing of the transaction, it is anticipated that Dr. Finkel will become vice president and chief technology officer of Molecular Devices, reporting to Dr. Keegan, who will remain president and chief executive officer. As previously announced, Geoffrey Powell will retire from the position of president of Axon after the closing of the transaction.