PETALUMA, Calif. (AP) -- Technology company Tegal Corp. said Monday it will buy CollabRx Inc., which develops technology that is used in genetic-based medicine.
Tegal did not put a price on the all-stock deal. It said it will issue approximately 236,000 additional shares of its own stock and swap them for 100 percent of the shares of CollabRx.
Tegal said CollabRx's systems help physicians, researchers, and others interpret data that is used to make health care decisions, including ways to treat cancer. Tegal plans to change its name to CollabRx after the purchase is complete. It will ask shareholders to approve the change in September. For now, Tegal said it will keep its current name and "TEGL" ticker symbol.
The new company will be based in San Francisco, and CollabRx CEO James Karis and Tegal CEO Thomas Mika will serve as co-chief executives.
Shares of Tegal jumped $1.60, or 44.5 percent, to $5.20 in afternoon trading. Earlier in trading shares hit a 52-week high of $6.17.
