Monday, September 17, 2012 8:31:12 AM
GNOM buyout: $117.6 Million Deal
By Melodie Warner
Complete Genomics Inc. (GNOM) agreed to be acquired by the China-based
genomics company BGI-Shenzhen in a roughly $117.6 million deal.
BGI's U.S. unit will launch a cash tender offer of $3.15 a share, an 18%
premium to Complete Genomics's Friday close. The stock has risen 36% over the
past three months.
In June, Complete Genomics announced plans to cut 55 jobs and the provider of
human genome sequencing also said it hired an adviser to explore strategic
options, including a possible sale.
The company's board has unanimously recommended shareholders accept the offer
and tender their stock.
All of Complete Genomics's directors, executive officers and certain other
major stockholders--who collectively own about 17.5% of the stock
outstanding--have agreed to tender their shares.
The companies expect to complete the transaction in early 2013.
Complete Genomics launched as a venture-based company working to make DNA
sequencing faster and cheaper. It has struggled with recurring losses since
becoming a public company in November 2010, though its prospects seemed to
improve after it signed an agreement in February with the Mayo Clinic's Center
for Individualized Medicine to provide whole human genome sequencing services.
Write to Melodie Warner at melodie.warner@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 17, 2012 07:01 ET (11:01 GMT)
Copyright (c) 2012 Dow Jones & Company, Inc.
091712 11:01 -- GMT
By Melodie Warner
Complete Genomics Inc. (GNOM) agreed to be acquired by the China-based
genomics company BGI-Shenzhen in a roughly $117.6 million deal.
BGI's U.S. unit will launch a cash tender offer of $3.15 a share, an 18%
premium to Complete Genomics's Friday close. The stock has risen 36% over the
past three months.
In June, Complete Genomics announced plans to cut 55 jobs and the provider of
human genome sequencing also said it hired an adviser to explore strategic
options, including a possible sale.
The company's board has unanimously recommended shareholders accept the offer
and tender their stock.
All of Complete Genomics's directors, executive officers and certain other
major stockholders--who collectively own about 17.5% of the stock
outstanding--have agreed to tender their shares.
The companies expect to complete the transaction in early 2013.
Complete Genomics launched as a venture-based company working to make DNA
sequencing faster and cheaper. It has struggled with recurring losses since
becoming a public company in November 2010, though its prospects seemed to
improve after it signed an agreement in February with the Mayo Clinic's Center
for Individualized Medicine to provide whole human genome sequencing services.
Write to Melodie Warner at melodie.warner@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 17, 2012 07:01 ET (11:01 GMT)
Copyright (c) 2012 Dow Jones & Company, Inc.
091712 11:01 -- GMT
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