Pacific Biosciences of California, Inc. (NASDAQ: PACB) hiked Friday after Illumina, Inc. (NASDAQ: ILMN) announced it would acquire the company for $8 per share in cash.
The Menlo Park, California-based Pacific Bio reported Thursday that the eight-dollar price represents a premium of 71% to Pacific Biosciences’ 30-trading-day-volume weighted average share price as of the market close on October 31, and a total enterprise value of approximately $1.2 billion on a fully diluted basis.
Ilumina is headquartered in San Diego, and while Illumina’s accurate and economic short-read sequencing platforms address the majority of sequencing applications optimally, select applications, such as de novo sequencing and sequencing of highly homologous regions of genomes, are better addressed with accurate long-reads.
With its acquisition of Pacific Biosciences, Illumina will be positioned to provide integrated workflows and novel innovations that bring together the best of both technologies to help researchers advance their discoveries faster and clinicians offer new tests economically.
Said Pacific CEO Michael Hunkapiller, “Illumina continues to democratize the use of sequencing at an unprecedented rate. Through this combination, thousands of researchers will now have direct access to this technology.”
The transaction is subject to approval by the shareholders of Pacific Biosciences, as well as other customary closing conditions, including applicable regulatory approvals. Illumina expects to close the transaction in mid-2019.
PACB shares moved into the stratosphere by midday, gaining $3.03, or 67.2%, to $7.54, while shares in ILMN improved $14.49, or 4.6%, to $327.23.
This article provided by NewsEdge.