CombiMatrix Corp (NASDAQ: CBMX) shares ballooned Tuesday morning as the company disclosed that it has entered into a merger agreement with Invitae Corp (NYSE: NVTA)
The Irvine, California-based CombiMatrix is a family health molecular diagnostics company specializing in DNA-based reproductive health and pediatric testing services. CombiMatrix specializes in pre-implantation genetic diagnostics and screening, prenatal diagnosis, miscarriage analysis and pediatric developmental disorders, offering DNA-based testing for the detection of genetic abnormalities beyond what can be identified through traditional methodologies.
The agreement is taking the form of an all-stock merger for approximately $33 million of combined consideration, based on a fixed price per share of Invitae’s common stock of $9.49 and subject to certain adjustments described below. The merger has been approved by each company’s board of directors.
CombiMatrix CEO Mark McDonough said “We are excited about the prospect of joining forces with Invitae, one of the nation’s fastest-growing genetics information companies, to help achieve even higher levels of patient satisfaction, growth and shareholder value.
“At CombiMatrix, we have worked very hard to establish ourselves as a high-touch, patient-focused organization delivering the highest quality in reproductive health and pediatric diagnostic testing services.
San Francisco-based Invitae claims to be one of the fastest-growing genetic information companies in the United States stating its mission as to bring "comprehensive genetic information into mainstream medical practice to improve the quality of healthcare for billions of people."
Both companies’ stock prices benefited from the deal, at least Tuesday, with CBMX climbing $2.03, or 41.1%, to $6.98, while shares in Invitae gained 65 cents, or 7%, to $9.93.
