American biotechnology company Illumina has announced an agreement to acquire rival firm Pacific Biosciences (PacBio) for around US$1.2bn
At $8 per share, the purchase is at a premium of 71% on PacBio’s 30 trading day volume weighted average share price as of close of trading on 31 October.
Illumina’s statement on the matter said that the acquisition will complement its existing sequencing solutions by adding long-read sequencing capabilities to its genomic research.
It added that the long-read sequencing market is set to grow to $2.5bn by 2022, with the purchase securing an advantage for Illumina in this expanding space as well as positioning the firm to enable integrated workflows and innovations that converge long-read and short-read tech to accelerate the rate of discoveries.
“While Illumina’s accurate and economic short-read sequencing platforms address the majority of sequencing applications optimally, select applications, such as de novo sequencing and sequencing of highly homologous regions of genomes, are better addressed with accurate long-reads,” the statement read.
Michael Hunkapiller, CEO of PacBio, said:
“Illumina continues to democratize the use of sequencing at an unprecedented rate. Through this combination, thousands of researchers will now have direct access to this technology.”
“Illumina and Pacific Biosciences have shared values and a commitment to innovation. Our complementary sequencing technology, once integrated, will offer customers a new standard of insight and understanding, opening new frontiers of genomic utility.”