GCA advises on $1bn cross-border genetics acquisition

GCA advises on $1bn cross-border genetics acquisition
One of biggest deals so far of 2017 in healthcare sector

Global investment bank GCA Altium, which has a significant presence in Manchester, has advised technology firm Konica Minolta on its $1bn acquisition of Ambry Genetics Corporation, in a cross-border deal advised on by the global investment bank.

The transaction represents one of the major healthcare acquisitions of 2017 and is the largest ever undertaken by Konica Minolta, which has a site in Warrington, marking a strategic shift for the company’s healthcare business as it seeks a leading position in precision medicine.

Under the terms of the deal, $800m will be paid at closing, and there will be an additional payment of up to $200m based on financial metrics over the next two years, taking the total acquisition value to $1bn. Konica Minolta and INCJ will hold ownership stakes of 60 per cent and 40 per cent respectively.

Konica Minolta’s UK head office is based in Basildon. The business operates out of 14 offices throughout the UK and employs over 900 people.

Ambry Genetics, headquartered in Aliso Viejo, California, offers the industry’s most comprehensive suite of genetic testing solutions for hereditary and non-hereditary diseases as well as numerous clinical specialties. Considered a pioneer in genetic testing, the company has performed over one million genetic tests and identified more than 45,000 mutations on at least 500 different genes.

Konica Minolta views the acquisition as the first step in creating a new medical platform in precision medicine – an emerging approach to healthcare that uses genetic or other molecular analyses to match patients with the most appropriate treatments or interventions for their specific diseases.

Konica Minolta’s High-Sensitivity Tissue Testing (HSTT) – an advanced immunostaining technology – and Ambry’s genetic diagnostic technology are essential technologies for patient grouping and drug development.

This is the latest in a series of healthcare deals for GCA and highlights the business’s growing international reach following the merger between GCA and Altium in August last year.

Phil Adams, group chief executive at GCA Altium, said: “This is a landmark acquisition for Konica Minolta – in terms of the value of the transaction and the growth opportunities for Ambry Genetics within a rapidly evolving area of medicine. It also demonstrates the global advisory firepower we now have following our merger, encompassing fifteen offices across Europe, Asia and the US.”

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