LabCorp to Acquire Sequenom for $371 Million

Laboratory Corporation of America Holdings (LabCorp), a healthcare diagnostics company, is purchasing Sequenom Inc., a pioneer in non-invasive prenatal testing (NIPT) for reproductive health, for $371 million, including net indebtedness.

“Sequenom’s NIPT and genetic testing capabilities will advance LabCorp’s strategy to deliver diagnostic solutions,” said David P. King, chairman and CEO of LabCorp. “This is exactly the kind of strategic acquisition that LabCorp seeks: Sequenom was the first laboratory to offer a clinically validated NIPT test (MaterniT21) and has performed more than 500,000 tests to date. Sequenom’s  best-in-class technology and strong research complement LabCorp’s women’s health offering, providing patients and physicians with one source for a complete range of testing options in women’s health, including NIPT and reproductive genetics.”

Under the terms of the agreement, LabCorp has formed an acquisition subsidiary, Savoy Acquisition Corp., that will commence a tender offer to purchase all outstanding shares of Sequenom for $2.40 per share. The tender offer and the merger are subject to customary closing conditions set forth in the merger agreement. The deal is expected to close by year’s end.
 
“Sequenom expands LabCorp’s geographic reach both domestically and internationally, offering services through licensing and commercial partnerships with an emphasis on the European Union and Asia Pacific. The addition of Sequenom to the LabCorp family meets our stated financial criteria, furthering our mission to improve health and improve lives around the globe,” King added.
 
“We are extremely excited to join LabCorp in its mission to deliver diagnostic solutions,” said Dirk van den Boom, Ph.D., president and CEO of Sequenom. “Strategically, this transaction makes sense. LabCorp is a healthcare diagnostics company, providing clinical laboratory and end-to-end drug development services. Sequenom is a pioneer in noninvasive prenatal testing for reproductive health. Over the last nine months, Sequenom has vastly enhanced its technology, operations, and business prospects. The opportunities this transaction presents are significant and important both for our reproductive health business as well as our liquid biopsy strategy. Becoming part of LabCorp helps Sequenom reach a much broader market for our testing.”
 
JP Morgan is acting as financial advisor to Sequenom in connection with the transaction, and Cooley LLP is providing legal advice. Barclays is acting as financial advisor to LabCorp, and Hogan Lovells is providing legal advice.
 
Sequenom Inc. serves patients and physicians by providing early patient management information. Sequenom Laboratories, a CAP-accredited and CLIA-certified molecular diagnostics laboratory, has developed a broad range of laboratory tests, with a focus principally on prenatal care. Branded under the names HerediT, HerediT UNIVERSAL, MaterniT GENOME, MaterniT 21 PLUS, NextView, SensiGene and VisibiliT, these molecular genetic laboratory-developed tests provide early patient management information for obstetricians, geneticists, and maternal fetal medicine specialists. 
 
Laboratory Corporation of America Holdings, an S&P 500 company, providing clinical laboratory and end-to-end drug development services. LabCorp delivers diagnostic solutions, brings medicines to patients faster and develops technology-enabled solutions to change the way care is provided. With net revenue in excess of $8.5 billion in 2015, LabCorp’s 50,000 employees serve clients in 60 countries.