Invitae Acquiring ArcherDX, Stock Skyrockets 45%
Invitae (NYSE: NVTA) announced on Monday that it plans to acquire genomic analysis company ArcherDX in a transaction valued at around $1.4 billion. Under the terms of the deal, Invitae will provide $325 million in cash and 30 million shares of Invitae common stock upfront. In addition, another 27 million shares of Invitae common stock will be payable contingent upon the achievement of specified milestones. Invitae stock skyrocketed as much as 48.4% on the news before closing 45% higher.
ArcherDX had planned to conduct an initial public offering (IPO) with the goal of raising up to $100 million. But those plans changed. ArcherDX CEO Jason Myer stated: "We are thrilled to unite with Invitae to form the leading hub for precision oncology, diagnostics, therapy optimization and monitoring, with an opportunity to accelerate both patient care and shareholder value."
Image source: Getty Images.
Source Fool.com
