US-based DNA sequencing platform developer Omniome agreed on Tuesday to an acquisition by sequencing technology provider Pacific Biosciences (PacBio) enabling property developer Nan Fung and semiconductor technology producer Lam Research to exit.
The transaction involves approximately $600m up front, consisting of 9.4 million PacBio common shares and $300m in cash, with a further $200m in cash and stock contingent upon the completion of certain milestones.
The deal is supported by a $300m private investment in public equity transaction backed by PacBio investors including SB Northstar – a fund managed by internet and telecommunications group SoftBank’s SB Management subsidiary – Casdin Capital and funds and accounts advised by T Rowe Price.
Founded in 2013, Omniome has built a DNA sequencing platform that has demonstrated potential use in cancer diagnostics and single-cell sequencing.
Christian Henry, PacBio’s president and CEO, said: “We chose Omniome because of its novel approach which we believe could result in the most accurate short-read sequencing platform to penetrate large, fast-growing clinical application areas in oncology, transcriptomics, metagenomics and non-invasive prenatal testing.”
Omniome closed a $60m series C round led by Madrone Capital Partners in January 2020, following a $60m series B in 2018 backed by Nan Fung Life Sciences and Lam Research Capital, on behalf of Nan Fung and Lam Research respectively.
Decheng Capital and Hillhouse Capital co-led the 2018 round, which included Arch Venture Partners, Domain Associates, Biomatics Capital Partners and Altitude Life Science Ventures. The company had previously raised $15.3m of debt and equity funding between 2012 and 2016, according to regulatory documents.