Bio-Techne buys Conn. testing-equipment firm for $60 million

Several months ahead of schedule, Bio-Techne Corp. has agreed to acquire Connecticut's CyVek for $60 million in cash and debt, plus future payments if revenue targets are achieved.

Minneapolis-based Bio-Techne — which recently rebranded itself from its old name, Techne Corp. — announced Tuesday it agreed to the deal after CyVek's biomedical analysis system CyPlex demonstrated its clinical effectiveness earlier than expected.

Bio-Techne makes and sells a range of purified proteins and bioactive tools for medical research and laboratory testing. The company recorded earnings of $125 million on revenue of $358 million for the year ended June 30. It employs 1,300 people worldwide.

CyVek is a privately held, four-year-old firm with 40 employees at its Wallingford, Conn., plant. It developed a system that uses a disposable microfluid cartridge and an analyzer that speeds up the time it takes to measure the concentration of certain molecules in a sample, according to a news release on the deal.

"The ability to include the highly valued Bio-Techne reagent content on the CyVek testing platform is viewed as an ideal way to leverage the maximum value from our extensive reagents portfolio," Bio-Techne President and Chief Executive Charles Kummeth said in the release. A reagent is a chemical used to test for the presence of another compound by ­creating a chemical reaction.

Beyond the $60 million purchase price for the ­company, CyVek stands to earn another $35 million if it hits revenue goals in the next 30 months. An additional earn-out bonus of more than $100 million is possible based on CyVek revenue through 2020.

Bio-Techne shares closed at $90.69 Tuesday, down 40 cents.