Illumina and Pacific Biosciences Announce Termination of Merger Agreement
03 January 2020 - 8:05AM
Business Wire
Illumina, Inc. (NASDAQ:ILMN) and Pacific Biosciences of
California, Inc. (NASDAQ:PACB) today announced that they have
mutually agreed to terminate their merger agreement, previously
announced on November 1, 2018, under which Illumina would acquire
Pacific Biosciences at a fully diluted enterprise value of
approximately $1.2 billion in an all-cash transaction.
Considering the lengthy regulatory approval process the
transaction has already been subject to and continued uncertainty
of the ultimate outcome, the parties decided that terminating the
agreement is in the best interest of their respective shareholders
and employees. In accordance with the merger agreement, Illumina
will pay Pacific Biosciences a termination fee of $98 million.
“We believe this proposed combination would have broadened
access to Pacific Biosciences sequencing technology, significantly
expanded and accelerated innovation, and ultimately increased the
clinical utility and impact of sequencing,” said Francis deSouza,
President and Chief Executive Officer of Illumina. “I’d like to
thank our employees, as well as the Pacific Biosciences team, for
their unwavering dedication and commitment throughout this process.
Moving forward, we will continue to look for ways to increase the
impact and benefit of sequencing technologies for researchers,
clinicians, and most importantly, patients.”
“We are disappointed that our customers and other stakeholders
will not realize the powerful advantages of integrating the
sequencing capabilities of our two companies,” said Michael
Hunkapiller, Ph.D., Chief Executive Officer of Pacific Biosciences.
“With that said, we are confident in the future of Pacific
Biosciences as we continue to pursue improved sequencing accuracy
and throughput that can be utilized in an ever-expanding number of
applications.”
About Pacific Biosciences
Pacific Biosciences of California, Inc. (NASDAQ:PACB) offers
sequencing systems to help scientists resolve genetically complex
problems. Based on its novel Single Molecule, Real-Time (SMRT®)
technology, Pacific Biosciences’ products enable: de novo genome
assembly to finish genomes in order to more fully identify,
annotate and decipher genomic structures; full-length transcript
analysis to improve annotations in reference genomes, characterize
alternatively spliced isoforms in important gene families, and find
novel genes; targeted sequencing to more comprehensively
characterize genetic variations; and real-time kinetic information
for epigenome characterization. Pacific Biosciences’ technology
provides high accuracy, ultra-long reads, uniform coverage, and the
ability to simultaneously detect epigenetic changes. PacBio®
sequencing systems, including consumables and software, provide a
simple, fast, end-to-end workflow for SMRT Sequencing. More
information is available at www.pacb.com.
About Illumina
Illumina is improving human health by unlocking the power of the
genome. Our focus on innovation has established us as the global
leader in DNA sequencing and array-based technologies, serving
customers in the research, clinical, and applied markets. Our
products are used for applications in the life sciences, oncology,
reproductive health, agriculture, and other emerging segments. To
learn more, visit www.illumina.com and follow @illumina.
Forward-Looking Statements
All statements in this press release that are not historical are
forward-looking statements, including, among other things,
statements relating to future improvements in the technology of
each of Illumina and Pacific Biosciences, the growth of each
company, the expansion of the applications for each company’s
products and technology, and other future events. You should not
place undue reliance on forward-looking statements because they
involve known and unknown risks, uncertainties, changes in
circumstances and other factors that are, in some cases, beyond
each of Illumina’s and Pacific Biosciences’ control and could cause
actual results to differ materially from the information expressed
or implied by forward-looking statements made in this press
release. Factors that could materially affect actual results can be
found in Illumina’s and Pacific Biosciences’ most recent filings
with the Securities and Exchange Commission, including Illumina’s
and Pacific Biosciences’ most recent reports on Forms 8-K, 10-K and
10-Q, and include those listed under the caption “Risk Factors.”
Each of Illumina and Pacific Biosciences undertakes no obligation
to revise or update information in this press release to reflect
events or circumstances in the future, even if new information
becomes available.
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Illumina Contacts
Media: Jen Carroll (858) 449-8082 pr@illumina.com OR Investors:
Jacquie Ross, CFA (858) 882-2172 ir@illumina.com
Pacific Biosciences Contact
Ben Gong (650) 521-8203 ir@pacificbiosciences.com
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