Washington Editor

Shares in Sentigen Holding Corp. were boosted by 19.6 percent Friday on news that the company was being bought at a premium for $25.9 million by Invitrogen Corp.

The deal combines Sentigen's Tango Assay System and division-arrested Assay Ready Cells with Invitrogen's existing operations in assay development to bolster the latter's offerings by providing a new approach to screen G-protein coupled receptors and other drug target classes, and also provide a methodology to convert live cell assays into ready-to-use consumable products.

The definitive merger agreement calls for Carlsbad, Calif.-based Invitrogen to pay cash for all of Sentigen's issued and outstanding shares at $3.29 apiece. The stock (NASDAQ:SGHL) climbed to $3.40 at the close of business Friday, up from $2.75 a day before. Investors also warmed to Invitrogen's stock (NASDAQ:IVGN), which gained $1.39 to $62.24.

As of June 30, Sentigen had $11.7 million in cash and cash investments, as well as $800,000 in debt. The New York-based company will become a part of Invitrogen's Discovery Sciences Business based in Madison, Wis.

The transaction, which is expected to close next quarter, remains subject to customary closing conditions, including stockholder approval. Invitrogen does not expect the acquisition to have a material affect on its financials for this fiscal year.