Biotech Values

[mouton29]

Recursion and Exscientia agree to merge in all stock deal.

Transaction Details
Under the terms of the transaction agreement, which were unanimously approved by the boards of directors of both companies, Exscientia shareholders will receive 0.7729 shares of Recursion Class A common stock for each Exscientia ordinary share they own, with fractional shares paid in cash. Based on the fixed exchange ratio, Recursion shareholders will own approximately 74% and Exscientia shareholders will own approximately 26% of the combined company, in each case assuming no additional issuance by either company before closing. Major shareholders of each company, including holders of more than 40% of Exscientia shares, have entered into agreements on customary terms and conditions under which they have agreed to vote all their shares in favor of the transaction. There is approximately $850 million in cash and cash equivalents held by both companies at the end of Q2 2024. The combined company is estimated to achieve annual synergies of approximately $100 million with a runway extending into 2027.

https://ir.recursion.com/news-releases/news-release-details/recursion-and-exscientia-enter-definitive-agreement-create

Market apparently believes the synergy claims or otherwise likes the deal as both companies are trading up, EXAI 20% and RXRX about 5% as I write this.

FWIW, first time for me, I own both companies entering into a merger agreement.