The shares of Cellular Dynamics International skyrocketed after announcing that it will be acquired by Fujifilm Holdings.

The stock price of Cellular Dynamics rose more than 107% to $16.48 per share, at the time of this writing around 11:34 A.M. in New York.

Cellular Dynamics is a developer and manufacturer of fully functioning human cells including induce pluripotent stem cells (iPSCs), in industrial quantities to a precise specification. The company uses the cell programming techniques of James Thomson, a scientist at the University of Wisconsin-Madison.

Cellular Dynamics is actively expanding its IPS cell supply business in the United States. Most recently, the company established iPS disease cell banks in conjunction with the California Institute of Regenerative Medicine.

Cellular Dynamics Fujifilm

Transaction details

Fujifilm Holdings agreed to buy Cellular Dynamics for $16.50 per share or approximately 307 million, which represents a 108% premium to the closing price of $7.94 per share on Friday. The Japanese company will start an all-cash offer on April 6. It will finance the transaction with the cash on its balance sheet.

The board of directors of Cellular Dynamics and Fujifilm Holdings unanimously approved the transaction. The companies expect to close the deal in the second quarter of this year.

Cellular Dynamics will become a subsidiary of Fujifilm following the acquisition. It will continue to operate its business in Madison and Novato, California.

Cellular Dynamics will help boost Fujifilm’s comepetitiveness in regenerative medicine

Cellular Dynamics Chairman and CEO Robert Palay said his company and Fujifilm share a common strategic vision with Fujifilm to achieve the leading position in the field of regenerative medicine.

He said, “The combination of CDI’s technology with Fujifilm’s technologies, know-how, and resources brings us ever closer to realizing the promise of discovering better, safer medicines and developing new cell therapies based on iPSCs.”

On the other hand, Fujifilm Chairman and CEO Shigetaka Komori said, “We will seek synergies and efficiencies to be more competitive in the field of drug discovery and regenerative medicine.”

Fujifilm developed highly-biocompatible recombinant peptides that can be shaped into different forms to use as a scaffold in regenerative medicine in combination with the products of Cellular Dynamics. The Japanese company has been strengthening its position in regenerative medicine for several years. It acquired a majority stake in Japan Tissue Engineering Co last year.

Fujifilm’s acquisition of Cellular Dynamics enables it to enter the iPS cell-based drug discovery support services. The merger will help accelerate product development in regenerative medicine.