Rutherford-based Cancer Genetics Inc. to acquire North Carolina-based company

Rutherford-based Cancer Genetics Inc. to acquire North Carolina-based company 

Cancer Genetics Inc., a Rutherford-based DNA diagnostics company that performs oncology tests and services, said Monday that it has agreed to buy a North Carolina-based biomarker testing and biorepository services company for about $4.75 million as the company extends its reach by acquisitions.

Cancer Genetics said it had signed a non-binding letter of intent to buy Gentris Corp., a privately held company. The purchase price is $3.25 million in cash, $1.5 million in Cancer Genetics stock, and performance-based earn outs up to $1.5 million, according to a news release.

The acquisition of Gentris will allow Cancer Genetics to have genome-based tests for cancer diagnosis and prognosis and also allow for the company to provide personalized medications for the treatment of specific cancers, the release said.

"Gentris has world-class expertise in pharmacogenomics that will be highly complementary to our existing oncology diagnostic business," Panna Sharma, chief executive officer of Cancer Genetics, said in the news release. "We view this acquisition as part of our long-range strategic plan to deepen our capabilities in developing unique and individualized treatment insights in oncology.''

The acquisition is expected to be completed in the third quarter of 2014 and will be treated as an asset purchase, Cancer Genetics said. Forty employees employed by Gentris will now become Cancer Genetics employees, the news release said.

The Gentris acquisition is the second purchase Cancer Genetics has made in 2014. In May, the company said it bought India-based BioServe Biotechnologies India Pvt. Ltd. for about $1.9 million as part of a global growth strategy.

"Once we complete the Gentris acquisition, and the previously announced BioServe acquisition, Cancer Genetics will have approximately 60,000 square feet of state-of-the-art lab space that can serve the needs for oncology-focused patient testing and biopharma trials globally," Sharma said in the release.