Illumina Confirms Deal For Grail
September 21 2020 - 7:51AM
Dow Jones News
By Micah Maidenberg
Illumina Inc. said Monday it has agreed to purchase Grail Inc.
in a cash-and-stock deal that would give Illumina control of the
developer of a blood test that aims to detect cancer in its early
stages.
Grail was founded by Illumina in 2016 and spun out into a
separate company, Illumina said. The company had raised about $2
billion to support its technology platform and the Galleri tool.
Galleri, the cancer testing platform that analyzes patients' blood,
is expected to launch next year commercially.
Illumina said it will pay $3.5 billion in cash and provide $4.5
billion in its common stock to Grail shareholders to complete the
transaction. Illumina currently owns 12% of Grail shares on a fully
diluted basis.
The so-called "collar" on the stock portion of the planned
acquisition will ensure the Grail stockholders receive Illumina
shares that are equal to about $4 billion in value, the companies
said.
The Wall Street Journal earlier reported that Illumina's
acquisition for Grail was imminent.
"As we accelerate our path to clinical leadership and the path
to multi-cancer early detection, we will continue to drive
significant value creation for our stockholders," Illumina Chief
Executive Francis deSouza said in a statement.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
September 21, 2020 07:36 ET (11:36 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Illumina (NASDAQ:ILMN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Illumina (NASDAQ:ILMN)
Historical Stock Chart
From Apr 2023 to Apr 2024