Invitae to acquire ArcherDx for up to $1.4B

Jun. 22, 2020 7:26 AM ETInvitae Corporation (NVTA), RCHRNVTA, RCHRBy: Douglas W. House, SA News Editor63 Comments
  • Genetic testing services provider Invitae (NYSE:NVTA) has agreed to acquire privately held cancer molecular diagnostic test developer ArcherDx (RCHR), which filed a preliminary prospectus about two weeks ago for an IPO, for up to ~$1.4B.
  • Under the terms of the deal, NVTA will pay $325M in cash and 30M shares of its common stock plus up to an additional 27M shares if certain milestones are met. The transaction should close in several months.
  • In connection with the tie-up, NVTA has arranged financing with a Perceptive Advisors-led syndicate of investors that includes the direct sale of $275M of its common stock at $16.85 (Friday's close was $18.71) per share plus a $200M credit facility.
  • Since filing its most recent 10-Q on May 11, NVTA has raised $46M via the at-the-market sale of ~2.6M common shares at an average price of $17.59.
  • It expects to have ~$425M in cash when the deal closes.
  • Management will host a conference call today at 8:00 am ET to discuss the merger.
  • NVTA is up 1% premarket on light volume.

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