The board of Complete Genomics has recommended that its shareholders accept a $117.6 million takeover bid by China’s BGI-Shengzhen. Under terms of the agreement, a wholly owned U.S. subsidiary of genomics specialist BGI would launch a tender offer to acquire the Complete Genomics’ outstanding stock for $3.15 per share cash, representing a 54% premium on the latter’s share price on June 4th, the day before it announced it was restructuring and looking for strategic alternatives. The firms have in addition inked a deal that will give Genomics $30 million in bridge financing for its operations once the merger agreement has been signed.
Established in 2005, Complete Genomics offers whole human genome sequencing services based on its Complete Genomics Analysis (CGA™) Platform, which combines the firm’s DNA nanoarrays and ligation-based read technology with informatics and data management software. BGI operates a number of genome sequencing centers internationally, and believes combining the two firms will provide complementary technological and scientific expertise and R&D capabilities. If the merger goes ahead Complete Genomics will continue to operate as a separate firm headquartered at its current site in Mountain View, CA.
“Complete has developed a proprietary whole human genome sequencing technology that, together with other sequencing platforms used by BGI, will fit well with our research and business requirements and position Complete to become an even more successful global innovator,” comments BGI CEO Wang Jun, Ph.D. “We look forward to growing the business to improve medical research and, when clinical services are provided, support better disease diagnosis with tools that can be used by doctors and hospitals to treat their patients.”