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Investing.com -- Standard BioTools Inc. (NASDAQ:LAB) stock surged 16.2% after announcing the sale of its SomaLogic business to Illumina, Inc. (NASDAQ:ILMN) for up to $425 million in cash, while Illumina shares edged down 0.9%.
The deal includes $350 million in upfront cash and up to $75 million in near-term milestone payments, plus 2% royalties on SOMAmer-based next-generation sequencing library preparation kit sales for 10 years. Standard BioTools will retain certain Single SOMAmer reagent commercialization rights.
"Since acquiring SomaLogic 18 months ago, we have fundamentally transformed the business," said Michael Egholm, President and CEO of Standard BioTools. "With SomaScan now in a position to realize its longstanding potential, full alignment across technology, applications and commercial capabilities is essential."
The transaction significantly simplifies Standard BioTools’ operating structure and paves the way for the company to achieve adjusted EBITDA break-even, a key priority for management. Following the deal’s completion, Standard BioTools expects to have at least $550 million in cash.
The sale aligns with Standard BioTools’ M&A strategy of acquiring underappreciated assets with validated science and clear commercialization paths. The company targets technologies with strong margin potential and recurring revenue models in attractive markets like pharmaceutical, bioprocessing, and clinical research.
The transaction, unanimously approved by Standard BioTools’ Board of Directors, is expected to close in the first half of 2026, subject to regulatory approvals including Hart-Scott-Rodino clearance.
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