BGI-Shenzhen to buy Complete Genomics for $113.1M
MOUNTAIN VIEW, Calif. (AP) — Chinese genomics company BGI-Shenzhen is buying Complete Genomics for approximately $113.1 million, the companies said Monday.
BGI-Shenzhen will pay $3.15 in cash per Complete Genomics share, which is an 18 percent premium to the company's Friday closing price of $2.67. The companies value the deal at about $117.6 million.
Complete Genomics Inc.'s stock jumped 38 cents, or 14.2 percent, to $3.05 in morning trading on Monday. Over the past year, the shares have traded in a range of $1.57 to $9.26. Complete Genomics went public in November 2010 at $9 per share.
The company, which sells technology that can sequence human DNA for research purposes, has about 35.9 million outstanding shares, according to FactSet.
In June Complete Genomics announced that it hired a financial adviser to help it explore strategic options, including a possible sale of the company. It also announced at that time that it was laying off about 20 percent of its workforce, or about 55 jobs, in order to cut costs.
Complete says it has entered a deal with a BGI-Shenzhen affiliate for up to $30 million in bridge financing to fund operations once the buyout agreement is signed.
Complete's board has unanimously recommended that shareholders approve the transaction. Once the buyout is complete, the company will continue to run as a separate business and its headquarters will remain in Mountain View, Calif.
The acquisition is expected to close early next year.