Life Technologies to Acquire Sequencing Company
Life Technologies stated that Ion Torrent’s Personal Genome Machine is optimal for mid-scale sequencing projects, such as targeted and microbial sequencing. The system will launch later this year for less than $100,000. In 2008, Life Technologies acquired VisiGen (see IBO 10/31/08), another single-molecule sequencing company, and disclosed earlier this year that it expects early access for a system based on that technology to begin in the fourth quarter.
Carlsbad, CA and Guilford, CT 8/17/10—Life Technologies has agreed to buy Ion Torrent for $375 million in cash and stock. Ion Torrent’s PostLight sequencing technology translates chemical signals into digital information on a semiconductor chip. An additional consideration of $350 million cash and stock will be available upon the achievement of certain technical and time-based milestones through 2012. According to Life Technologies, the technology eliminates the cost and complexity associated with the extended optical detection used in other sequencing platforms. Ion Torrent founder Dr. Jonathan Rothberg will continue to lead the company, which will maintain its locations in Connecticut and California. The transaction is expected to be $0.02 dilutive to Life Technologies’ EPS this year, neutral in 2011 and accretive in 2010 and beyond. The acquisition is expected to close in the fourth quarter.
