Labcorp On the Verge of Acquiring Invitae’s AssetsLabcorp On the Verge of Acquiring Invitae’s Assets

The Burlington, NC-based company has been selected as the winning bidder to acquire Invitae’s assets for $239 million.

Omar Ford

April 29, 2024

1 Min Read
Image Credit: Smith Collection/Gado/Getty Images

Labcorp has been selected as the winning bidder in a process to acquire genetic specialist Invitae’s assets. The Burlington, NC-based company said it is acquiring the assets for $239 million in cash consideration, plus other non-cash consideration.

The acquisition comes a few months after San Francisco, CA-based Invitae filed for bankruptcy.

The hearing to approve the sale is currently scheduled for May 6th. With Court approval, as well as customary regulatory approvals and closing conditions, Labcorp and Invitae anticipate completing the sale process in 3Q24.

Upon completion, Labcorp expects this transaction would generate approximately $275 million to $300 million in annual revenue with the vast majority in specialty testing areas such as oncology and rare diseases.

For the past few years, Invitae has been struggling. The company undertook a massive restructuring plan in 2022 that saw it lay off more than 1,000 employees. The measure also had the company exiting some of its under-performing businesses and reducing the more than 100 countries it serves to a paltry dozen.

"The agreement with Labcorp marks a significant step in our financial restructuring and supports our efforts to continue to deliver innovative and industry-leading products and services for healthcare," said Ken Knight, president and CEO of Invitae.

Related:Layoffs Are Turning out to be Medtech’s Biggest Trend in 2023

About the Author

Omar Ford

Omar Ford is a veteran reporter in the field of medical technology and healthcare journalism. As Editor-in-Chief of MD+DI (Medical Device and Diagnostics Industry), a leading publication in the industry, Ford has established himself as an authoritative voice and a trusted source of information.

Ford, who has a bachelor's degree in print journalism from the University of South Carolina, has dedicated his career to reporting on the latest advancements and trends in the medical device and diagnostic sector.

During his tenure at MD+DI, Ford has covered a wide range of topics, including emerging medical technologies, regulatory developments, market trends, and the rise of artificial intelligence. He has interviewed influential leaders and key opinion leaders in the field, providing readers with valuable perspectives and expert analysis.

 

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