Boston, MA - June 30, 2003 - Privately held MolecularWare, Inc., a bioinformatics firm, announced that it has been purchased by California-based CalbaTech, Inc. (OTC BB: CLBE) and will become a wholly owned subsidiary of the life sciences company. Terms were not disclosed. Capstone Partners LLC acted as exclusive financial advisor to the shareholders of MolecularWare.
The acquisition by CalbaTech will allow MolecularWare to continue enhancing its DigitalGENOME suite and supporting the product's dozens of customers in the academic and commercial sectors around the world.
"The acquisition by CalbaTech was too good an opportunity to pass up, as it will allow us to reach our goals in expanding our products and customer base," said MolecularWare CEO Richard P. Kivel, who with key staff will remain with the company. Additional hires are slated for later this month.
MolecularWare's workflow management suite, which allows researchers to store, annotate and search data derived from high-throughput biology research, is a key asset for CalbaTech because of its history of generating revenues. In keeping with CalbaTech's business model, those revenues, bolstered by a modest infusion of capital to further grow the business, will generate cash flow for CalbaTech to offset its own research and development costs.
"MolecularWare is a perfect fit with CalbaTech and its business model," said James DeOlden, CalbaTech's CEO. "CalbaTech also believes that some of its recently acquired technologies, collaborations and intended future acquisitions will be much more successful at a much more rapid rate with MolecularWare in alliance as a dynamic partner in the research and diagnostics of life sciences."
With the infusion of cash, MolecularWare expects to release its next version of DigitalGENOME by the end of the summer.
Terms and conditions will be reported in connection with the expected Form 8-K that has not yet been filed.
MolecularWare (www.molecularware.com), founded in 1998, provides scientists with software to rapidly store, annotate, and search information derived from high-throughput biology research. It is located in Cambridge, Mass., in the biotech center of Kendall Square.
CalbaTech (www.CalbaTech.com) is focused on acquiring and developing early stage companies that are developing next generation products and technologies for life sciences in the U.S. and the U.K. CalbaTech is focused on products and/or technologies that will generate sales or licensing revenue in less than two years, and will require less than $1 million dollars to bring a product to market.
Note: Certain statements in this news release may contain "forward looking" information within the meaning of rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Act of 1934 and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, may include forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will be accurate and actual results and future events could differ materially from those anticipated in such statements.
DigitalGENOME is a registered trademark of MolecularWare, Inc. All other company names and products are registered trademarks of their respective companies.