The merger of Dunedin animal research company Catapult with Australian counterpart Genetic Solutions will cut risks and increase opportunities, the New Zealand company says.
Catapult chairman Jeff Grant said "merging the two companies reduces risk and offers more opportunities to grow the business, deliver more DNA technologies andensure that a strong, commercially focused business emerges from the years of research and development investment".
The merged company, Catapult Genetics, would have a stronger platform to take on US and European markets, Grant said.
"If you were looking at three years out, I think that the company's got a potential probably [to be] in the leading two or three diagnostic animal companies in the world for testing and DNA technology."
In July last year, Catapult said it had developed a DNA test for a gene in sheep that could identify animals with leaner and meatier carcases.
A ram with a single copy of the gene could produce offspring with 5 per cent more leg and rump muscle, and 7 per cent less fat, while the result could be as much as double that in an animal carrying a double copy of the gene.
The merged company would combine DNA marker research, development and commercialisation for sheep and cattle.
Catapult specialises in sheep with operations in New Zealand, Britain and Australia, while Genetic Solutions is focused on cattle with marketing, distribution and testing partners in Australia, Europe, South Africa and North America.
"Merging these companies gives us a stronger company and increased benefits to sheep and beef farmers in both countries," Grant said.
Genetic Solutions chairman Mel Bridges said the merged company would be able to get products to market faster.
Shareholders of the merged company are Meat & Wool New Zealand - of which Grant is chairman - AgResearch, CSIRO, Nanyang Innovation Fund and Genetic Solutions founders Jay Hetzel and Gerard Davis.
AgResearch chairman Rick Christie said DNA technology was already adding value for farmers.
"Catapult and Genetic Solutions have a track record for delivering advanced genomic technologies to livestock industries and their R & D partnerships will provide substantial pipelines for new products."
