Brings Together Highly Accurate Short- and Long-Read Sequencing
Technologies, Paving the Path to a More Perfect View of a Genome
Pacific Biosciences’ Recent Advances with its Sequel SMRT®
Technology, Combined with Illumina’s Infrastructure, will Expand
Biological Discovery and Clinical Insight
Long-Read Sequencing Market Opportunity Expected to Grow to $2.5B
SAN DIEGO & MENLO PARK, Calif.--(BUSINESS WIRE)--Nov. 1, 2018--
Illumina, Inc. (NASDAQ: ILMN) and Pacific Biosciences (NASDAQ:PACB)
today announced they have signed an agreement for Illumina to acquire
Pacific Biosciences at a price of $8.00 per Pacific Biosciences share in
an all-cash transaction. This price represents a premium of 71% to
Pacific Biosciences’ 30 trading day volume weighted average share price
as of the market close on October 31st, 2018, and a total enterprise
value of approximately $1.2 billion on a fully diluted basis.
The agreement has been approved by the board of directors of Illumina
and Pacific Biosciences. The acquisition complements Illumina sequencing
solutions with accurate long-read sequencing capabilities to answer a
set of complex genomic questions. While Illumina’s accurate and economic
short-read sequencing platforms address the majority of sequencing
applications optimally, select applications, such as de novo
sequencing and sequencing of highly homologous regions of genomes, are
better addressed with accurate long-reads. With its acquisition of
Pacific Biosciences, Illumina will be positioned to provide integrated
workflows and novel innovations that bring together the best of both
technologies to help researchers advance their discoveries faster and
clinicians offer new tests economically.
“PacBio’s unmatched accuracy mirrors that of Illumina’s in short-read
sequencing. Combining the two technologies positions us to reach more
applications, accelerate the pace of genomic discovery and bolster our
innovation engine which has been a hallmark of Illumina since our
inception,” said Francis deSouza, President and Chief Executive Officer
of Illumina. “PacBio’s relentless pursuit to improve sequencing
accuracy, while driving down the cost, underscores the potential of
long-reads to expand sequencing to new customers and applications.”
“Illumina continues to democratize the use of sequencing at an
unprecedented rate. Through this combination, thousands of researchers
will now have direct access to this technology,” said Michael
Hunkapiller, Ph.D., Chief Executive Officer of Pacific Biosciences.
“Illumina and Pacific Biosciences have shared values and a commitment to
innovation. Our complementary sequencing technology, once integrated,
will offer customers a new standard of insight and understanding,
opening new frontiers of genomic utility.”
The transaction is subject to approval by the shareholders of Pacific
Biosciences, as well as other customary closing conditions, including
applicable regulatory approvals. Illumina expects to close the
transaction in mid-2019.
Goldman Sachs & Co. LLC is serving as financial advisor and Covington &
Burling LLP is serving as legal advisor to Illumina. Centerview Partners
LLC is serving as financial advisor and Wilson Sonsini Goodrich & Rosati
LLP is serving as legal advisor to Pacific Biosciences.
Illumina will host a conference call to discuss the transaction today,
November 1, 2018 at 2:00 p.m. (Pacific Time).
Conference Call Information
Interested parties may access the live teleconference through the
Investor Relations section of Illumina’s web site under the “company”
tab at www.illumina.com.
Alternatively, individuals can access the call by dialing the Toll-Free
Dial-In Number: 1 (800) 708-4540, or the International Dial-In Number:
(847) 619-6397 outside North America, both with passcode 47821173.
A replay of the conference call will be available from 4:30 p.m. Pacific
Time (7:30 p.m. Eastern Time) on November 1, 2018 through November 8,
2018 by dialing 1 (888) 843-7419, or (630) 652-3042 outside North
America, both with passcode 47821173#.
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.
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 Statement This release contains projections,
information about our financial outlook, total addressable market, and
other forward-looking statements that involve risks and uncertainties.
These forward-looking statements are based on our expectations as of the
date of this release and may differ materially from actual future events
or results. Among the important factors that could cause actual results
to differ materially from those in any forward-looking statements are
(i) our ability to further develop and commercialize our instruments and
consumables and to deploy new products, including diagnostic assays,
services and applications, and expand the markets for our technology
platforms; (ii) our ability to manufacture robust instrumentation,
consumables, including diagnostic assays; (iii) our ability to
successfully identify and integrate acquired technologies, products or
businesses; (iv) the future conduct and growth of the business and the
markets in which we operate; (v) challenges inherent in developing,
manufacturing, and launching new products and services or integrating
acquired products and technology into our portfolio; (vi) our ability to
obtain necessary regulatory approvals to close the transaction described
or to market and sell diagnostic or therapeutic products and (vii) the
application of generally accepted accounting principles, which are
highly complex and involve many subjective assumptions, estimates, and
judgments, together with other factors detailed in our filings with
the Securities and Exchange Commission, including our most recent
filings on Forms 10-K and 10-Q, or in information disclosed in public
conference calls, the date and time of which are released beforehand. We
undertake no obligation, and do not intend, to update these
forward-looking statements, to review or confirm analysts’ expectations,
or to provide interim reports or updates on the progress of the current
View source version on businesswire.com: https://www.businesswire.com/news/home/20181101006099/en/
Source: Illumina, Inc.