Affymetrix to Acquire ParAllele

Affymetrix, a maker of products that analyze genetic data, agreed to acquire ParAllele BioScience, a San Francisco-based genetic technology firm, for roughly $120 million in stock.

ParAllele's Molecular Inversion Probe test allows up to tens of thousands of reactions to be multiplexed in a single tube with a high degree of accuracy and specificity. When combined with Affymetrix's GeneChip universal tag system, MIP technology provides scientists with access to any area of the genome. This technology has been used successfully in the International Human Haplotype Mapping Project.

Affymetrix said the deal builds on a successful two-year collaboration between the firms, and the company expects the acquisition to accelerate new product development and marketing, as well as drive sales. Affymetrix said it expects to close the acquisition in the third quarter of 2005, subject to customary closing conditions and regulatory approvals.