Labcorp On the Verge of Acquiring Invitae’s Assets

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