Exact Sciences Corp. (NASDAQ:EXAS) said Monday it will acquire Genomic Health, Inc. (NASDAQ:GHDX) for $72 per share in a cash and stock transaction valued at $2.8 billion.
The transaction has been unanimously approved by the board of directors of both companies and is expected to be completed by the end of 2019.
Upon closing of the deal, Exact Sciences shareholders are expected to own approximately 91% of the combined company, and Genomic Health stockholders are expected to own approximately 9%. Genomic Health stockholders will receive $27.50 in cash and $44.50 in shares of Exact Sciences stock.
The deal joins two of the strongest brands in cancer diagnostics, Cologuard® and Oncotype DX®, providing a strong platform for continued growth Forms best-in-class commercial, research, development and clinical organization, as well as enhanced scale and scope in cancer diagnostics
The combined company positioned to deliver approximately $1.6 billion in revenue and approximately $1.2 billion in gross profit in 2020
Says Exact CEO Kevin Conroy, "Uniting the best minds and molecular diagnostics capabilities will advance the fight against cancer. Combining industry pioneers Exact Sciences and Genomic Health is a pivotal step toward building the leading cancer diagnostics company in the world".
Exact Sciences shares are trading down $12.92, or 11% at $105.01 in Monday’s early session. The stock has a 52-week high of $121.98 and a 52-week low of $47.78.
Genomic Health shares are trading higher by $1.77, or 2.6% at $70.43 per share.
