Lifeline Scientific to merge with Shanghai Genext

International provider of clinical products and services in the field of transplantation, Lifeline Scientific, announced on Friday that it has entered into a definitive merger agreement with Shanghai Genext Medical Technology Company and its affiliates.

The AIM-traded firm described SGM as a medical products company serving the field of transplantation in the Asia region.

Pursuant to the merger agreement, SGM's affiliate would acquire all of the issued and to-be-issued shares of common stock of LSI for an aggregate consideration of up to$87.8m in cash.

The LSI board of directors unanimously approved the merger agreement, and will recommend shareholders vote in favour of the merger and acquisition.

“Subject to shareholder approval, the agreement with SGM represents an all cash offer and provides full liquidity for all LSI shareholders at closing,” said Lifeline Scientific CEO David Kravitz.

“Following the merger, we believe the combined group will be one of the largest and fastest growing global medical technology companies dedicated to serving the clinical transplant sector.”

Kravitz said the merger also represents an “excellent opportunity” for both SGM and LSI to broaden their products and services portfolios to better address the needs of transplant programme clients.

“Since announcing its strategic review in September 2015, the LSI board had been actively reviewing a number of options to enhance shareholder value, including possible strategic mergers, strategic acquisitions, a potential sale of the company, and a potential listing of the company's shares on the NASDAQ market,” he explained.

“The acquisition of LSI by SGM represents the culmination of the company's strategic review process."