Illumina Makes Bid for Complete Genomics
According to a Complete Genomics SEC filing, Illumina made offers of $2.25 per share and $2.85 per share for the company in August, which Complete Genomics turned down because it was a lower price per share than BGI-Shenzhen’s offer and because of concerns about antitrust approval. Subsequently, Illumina ended the negotiations due to the company’s simultaneous negotiation with BGI-Shenzhen. BGI-Shenzhen’s tender offer for the company’s shares has been extended until December 14. The Federal Trade Commission has requested additional information about the merger. In July, a paper published in Nature demonstrated Complete Genomics Long Fragment Read technology’s improved accuracy for whole-genome sequencing, ability to more easily map the chromosomal location of variant sequences and requirement of less DNA for whole-genome sequencing. Complete Genomics had 2011 revenues of $19.3 million.
Mountain View, CA and Shenzhen, China 9/17/12; Washington, DC 11/13/12; Washington DC, 11/21/12; Washington DC 11/25/12; Washington, DC 11/27/12—Publicly held Complete Genomics, a provider of DNA sequencing services, has rejected an offer by Illumina to acquire the company. On November 20, Illumina submitted a $3.30 per share unsolicited offer for the firm. In September, Complete Genomics announced a definitive merger agreement with BGI-Shenzhen, a China-based genomics company, for $3.15 per share, or $117.6 million. The price is a 54% premium over the June 4 price, the date before Complete Genomics announced it was evaluating strategic alternatives. Illumina wrote in a November 20 letter to Complete Genomics that its offer, unlike BGI-Shenzhen’s, was not subject to additional due diligence and was not contingent on financing or the approval of the Committee on Foreign Investment in the United States. Illumina also stated that the transaction would raise fewer antitrust concerns than BGI-Shenzhen’s offer. BGI-Shenzhen wrote to Complete Genomics on November 25 refuting Illumina’s claims and stating that Illumina’s primary aim is to remove a competitor from the market.
