Global springboard

Sosei Co. Ltd. dramatically shifted its center of gravity out of Japan - broadening its pipeline, investor base, cash balance and geographic footprint - when it announced last week that it would acquire Arakis Ltd. for £106.5 million ($186.6 million) in cash and stock.

For Arakis (Cambridge, U.K.), the deal provides near term market exposure and a strategic liquidity event for its investors at a valuation that was considered acceptable. The company had appointed Dresdner Kleinwort Wasserstein to examine the option of going public, but management was not convinced that the market would readily accept the £100 million ($174 million) pre-money valuation that Arakis was looking for, given investors' current aversion to offerings that are perceived as risky. ...