Columbia Labs. Buys Molecular Profiles For Around $25 Mln - Quick Facts

(RTTNews) - Columbia Laboratories Inc. (CBRX) reported acquiring privately-held Molecular Profiles Ltd., a cash-flow positive, U.K.-based pharmaceutical development services company, for about $25.0 million, including $16.7 million cash and 1.05 million shares of Columbia, representing ten to eleven times Molecular Profiles' projected EBITDA for its fiscal year to July 31, 2014.

The newly issued shares are subject to a twelve-month lock-up period. Excluding transaction costs, the purchase is likely to be immediately accretive. Further, Columbia expects to realize a double-digit impact to its EBITDA and operational synergies of up to $400,000 annually.

Furthermore, Molecular Profiles' CEO and co-founder, Dr. Nikin Patel, would join Columbia's board. On an unaudited basis, Molecular Profiles' recorded about $9 million in revenues for its fiscal year ended July 31, 2013.