Invitae to acquire ArcherDx for up to $1.4B

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 hosted a conference call today at 8:00 am ET to discuss the merger.

https://seekingalpha.com/news/3584829-invitae-to-acquire-archerdx-for-up-to-1_4b