The transaction is expected to close during the third quarter of 2014 and is subject to customary closing conditions and government approvals in India.
Under the terms of the agreement, BioServe will become a subsidiary of CGI, and will be renamed Cancer Genetics India Private Limited. CGI plans on retaining all 33 current employees of BioServea, and further expand and strengthen the sales and clinical teams in India.
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“With BioServe, CGI will become better positioned to increase our global presence in personalised cancer care and further improve outcomes and lower costs for cancer patients,” chief executive officer of the US-based CGI, Panna Sharma, stated in a press release here on Thursday.
BioServe is a genomics services provider and molecular kit manufacturer serving both research and clinical markets. It currently operates out of a 14,000-square-foot genomics facility in Hyderabad. It is backed by Ventureast, an India-based venture capital firm.
“We are happy to see that a biotechnology company we nurtured from its early stages is graduating to the next level. We share the belief that genomic services, next-generation sequencing and personalised diagnostics have tremendous potential in the country and can grow multi-fold in the coming years,” said Venkatadri Bobba, General Partner at Ventureast.
BioServe founder, Rama Modali, stated there were synergies between the two companies which could be unlocked by “combining our visions and teams together”.