Genomic Sequencing Firm Acquired by Chinese Company
The United States has seen its share of tension and protests over Chinese efforts to make acquisitions in North America, but usually this is over oil and gas assets. So what is there to say about a genomics sequencing company being acquired by the Chinese? Complete Genomics Inc. (NASDAQ: GNOM) is being acquired by BGI-Shenzhen in a move that will combine whole human genomic sequencing with a Chinese gene sequencing company based in Shenzhen, China.
Complete Genomics issued a press release showing that the company has now entered into a definitive merger agreement with BGI-Shenzhen where all outstanding shares of Complete's common stock will be acquired for $3.15 per share. The deal is an all-cash buyout and represents approximately a 54% premium to the $2.04 closing price per of Complete's stock back on June 4, 2012 from when it announced that it was going to evaluate strategic alternatives. In nominal terms, the purchase price comes to about $117.6 million.
The company had previously disclosed that it needed more financial resources in order to further commercialize of its technology. Complete's board of directors has also unanimously recommended that stockholders accept the offer.
Complete Genomics is trading up about 14% at $3.05 this morning and Yahoo! Finance lists the market capitalization at just above $91.5 million.
With so much criticism of Chinese quality in products, we have to wonder if the science community will treat this with the same respect. Hopefully this does not become knock-off genomic sequencing.
JON C. OGG
Filed under: 24/7 Wall St. Wire, Biotech, Mergers & Acquisitions Tagged: GNOM