“The acquisition of Targan’s best-in-class biodevice technology for use in commercial hatcheries complements and accelerates our growing biopharmaceutical presence in poultry and increases our ability to deliver significant customer value globally,” said Rick DeLuca, president, Merck Animal Health. “Additionally, Targan brings device development capabilities that will further strengthen our ability to provide animal health solutions across species. This transaction, coupled with our commercial and scientific expertise, is another example of how we deliver meaningful innovation to our customers while creating new opportunities for the future.”

Upon closing, the acquisition is expected to broaden Merck Animal Health’s portfolio in commercial poultry operations with WingScan, an automated solution that uses vision technology to identify and sort chicks by gender, processing up to 160,000 chicks per hour. The technology, which can scale to any size hatchery operation, captures high-resolution images of each chick’s feathers and analyzes them in real-time using advanced engineering capabilities and proprietary algorithms.

This acquisition also brings the capability of high-speed precision ocular spray technology, which administers respiratory and coccidiosis vaccines, among others, to day-old chicks. Additionally, Targan has the potential to develop additional biodevices within poultry and other livestock species, which may shape the next frontier in the animal health industry.

Targan Founder and CEO Ramin Karimpour said, “Merck Animal Health has been a foundational partner of Targan since our inception through its belief and commitment to scientific excellence and a common goal of bringing technological innovation to the livestock industry. Through this proposed acquisition, Targan will be able to access resources and infrastructure of Merck Animal Health, which will be critical in deploying Targan’s innovative biodevice technology along with Merck Animal Health’s broad portfolio of poultry vaccines for customers.”

Targan notably wishes to thank its supporters, customers and Board of Director members over the years, who have made valuable contributions to the growth of its business, including all of its employees and its investors and debt finance providers: Merck Animal Health Ventures, Mountain Group Partners, NovaQuest Capital Management, Oval Park Capital, Symbiotic Capital and Live Oak Bank.

BofA Securities, Inc. is serving as Targan’s exclusive financial advisor and Davis Polk & Wardwell LLP is serving as Targan’s legal advisor in connection with the transaction.

Source: Targan