Roche, Foundation Medicine Reach Definitive Merger Agreement

   By Pietro Lombardi

Roche Holding AG (ROG.EB) and Foundation Medicine Inc. (FMI) reached a definitive merger agreement Tuesday, under which Roche will acquire all the outstanding shares in Foundation Medicine not already owned by Roche and its affiliates for $2.4 billion.

Roche said that it will pay $137 per share in cash, which represents a premium of 29% to Foundation Medicine's closing price on Monday. The deal values the company at $5.3 billion.

"This is important to our personalized healthcare strategy as we believe molecular insights and the broad availability of high quality comprehensive genomic profiling are key enablers for the development of, and access to, new cancer treatments. We will preserve FMI's autonomy while supporting them in accelerating their progress," Daniel O'Day, chief executive of Roche Pharmaceuticals, said.

Roche expects to close the transaction in the second half of 2018.

Write to Pietro Lombardi at pietro.lombardi@dowjones.com

(END) Dow Jones Newswires

June 19, 2018 01:42 ET (05:42 GMT)

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