Invitae News: NVTA Stock Soars 43% on $1.4B ArcherDX Deal

Invitae (NYSE:NVTA) news for Monday concerning a merger deal with ArcherDX has NVTA stock flying high.

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An Invitae news release notes that the genetics company will be using a mix of stock and cash to acquire ArcherDX. This will have it making an upfront payment of 30 million shares of NVTA stock and $325 million in cash.

The agreement also includes an additional payment of 27 million shares of NVTA stock. This payment is available if certain milestones are met. If all of this comes to pass, then the total value of the deal would be $1.4 billion.

Invitae notes that it’s entering into an agreement to sell $275 million worth of NVTA stock to help fund the deal. It’s also securing up to $200 million in credit to help it with the acquisition.

Jason Myers, Ph.D., co-founder and CEO of Invitae, said this about the Invitae news.

“ArcherDX and Invitae share a foundational belief in the power of genomic information to impact care. We are thrilled to unite with Invitae to form the leading hub for precision oncology, diagnostics, therapy optimization and monitoring, with an opportunity to accelerate both patient care and shareholder value.”

Invitae also points out that the deal has the unanimous support of its Board, as well as the Board of Directors for ArcherDX. Pending closing conditions and shareholder approval, the deal is set to close in the next several months.

NVTA stock was up 42.8% as of Monday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2020/06/invitae-news-has-nvta-stock-soaring/.

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