Hamburg, Germany -29 September 2011: Evotec AG (Frankfurt Stock Exchange: EVT, TecDAX) today announced that it has signed a Share Purchase Agreement to acquire the remaining 30% of equity of its Joint Venture with DIL Limited, India for €1.7M.
The acquisition of DIL's 30% outstanding equity in the joint venture will give Evotec 100% ownership of this subsidiary. Evotec acquired 70% of the equity of Research Support International Private Limited (RSIPL), in August 2009 which was subsequently renamed Evotec (India) Private Limited. The transaction is anticipated to close on 4th October.
With its now 100% owned Indian subsidiary Evotec has successfully expanded its global scientific resource to offer the most complete and cost efficient drug discovery solutions to the pharmaceutical and biotech industry. Operating out of Thane, Mumbai, Evotec India has 140 scientists, focusing primarily on Medicinal Chemistry. Going forward the intention is to further grow and expand this capacity.
Colin Bond, Chief Financial Officer of Evotec stated: "With the purchase of the remaining 30% of our successful Indian Joint Venture, Evotec is now able to operate and accelerate this business with full control. This transaction will allow financial optimization and a significant reduction in administration. The deal also gives Evotec complete freedom to expand its activity in India in future without any restrictions. The access to a global best quality talent pool is the strategic reason for Evotec to establish operations in India. We would like to thank our friends at DIL for supporting us over the last two years and wish them well as they pursue new business avenues".
Despite the fact that Evotec pays in cash, the company keeps it cash guidance of more than €60 Mio by year end.