Page 1

PD PACBIOⓇ Pacific Biosciences Signs Definitive Agreement to Acquire Omniome July 20 , 2021 • Combination aims to transform the genomics landscape and deliver a differentiated product offering into high growth clinical markets • Brings together Omniome's high accuracy short - read sequencing platform , with PacBio's market leading , high accuracy long - read solutions • Transaction supported by concurrent $ 300 million PIPE financing from premier life science investors MENLO PARK , Calif . and SAN DIEGO , July 20 , 2021 ( GLOBE NEWSWIRE ) -- Pacific Biosciences of California , Inc. ( Nasdaq : PACB ) ( " Pacific Biosciences " or " PacBio " ) , a leading provider of high - quality , long - read sequencing platforms , announced today that it has signed a definitive merger agreement under which it will acquire Omniome , a San Diego - based company developing a highly differentiated , proprietary short - read sequencing platform capable of delivering high accuracy . When the merger closes , we believe PacBio will be uniquely positioned as the only company with both highly accurate long - read and short - read sequencing platforms . The integration of these complementary technologies will enable PacBio to dramatically expand its market opportunity for sequencing in novel ways , providing more value to customers across the broadest spectrum of applications . " The acquisition of Omniome is completely aligned with PacBio's mission of enabling the promise of genomics to better human health . Adding Omniome's short - read sequencing technology to our long - read portfolio will not only enable us to expand our total market opportunity , but we believe will also further accelerate the adoption of SMRT Sequencing as we expect to reach more customers with a deeper product offering , " said Christian Henry , President and CEO of PacBio . " We chose Omniome because of its novel approach which we believe could result in the most accurate short read sequencing platform to penetrate large , fast growing clinical application areas in oncology , transcriptomics , metagenomics and non - invasive prenatal testing ( NIPT ) . " " The team at Omniome has spent several years developing a new and differentiated sequencing chemistry , Sequencing by Binding ( SBB ) . We developed this chemistry because clinical applications require a level of accuracy that is difficult to achieve with current sequencing technologies . SBB has fundamental advantages over other technologies and the potential to deliver higher sensitivity at a lower cost to unlock new markets , " said Richard Shen , President at Omniome . " PacBio has assembled a strong leadership team with vision and deep experience in next generation sequencing and genomics . We look forward to joining this team and recognizing the tremendous synergies between our respective research and development organizations to accelerate the value of genomics through our combined technology . " " By bringing together the impressive R & D talent from Omniome and PacBio , as well as our scaled manufacturing and commercial infrastructure , we now have a unified team operating on the same principle : that status quo is simply not good enough when it comes to the future of genomics , " said Mark Van Oene , Chief Operating Officer at PacBio . " Scientists and clinical researchers rely on accurate short reads and accurate long reads to conduct their science and answer their specific questions . PacBio is committed to delivering the most advanced combination of sequencing solutions to enable the complete genomics landscape . " Transaction Terms Under the terms of the agreement , PacBio will acquire Omniome for upfront consideration of approximately $ 600 million consisting of 9.4 million shares of PacBio common stock and $ 300 million in cash , plus an additional $ 200 million in cash and stock payable in connection with the achievement of certain milestones , for an overall transaction valued at approximately $ 800 million . The transaction , which has been unanimously approved by the Boards of Directors of both companies , is expected to close later this quarter , subject to customary closing conditions and regulatory approvals . Financing Activities In connection with the proposed acquisition , PacBio has entered into a definitive agreement to sell approximately 11.2 million shares of PacBio common stock in a private placement transaction at a price of $ 26.75 per share , for aggregate gross proceeds to the Company of approximately $ 300 million , with commitments from a premier syndicate of life sciences investors . The private placement is being supported by key existing investors in PacBio , including Casdin Capital , SB Northstar LP , a fund managed by SB Management Limited , a 100 % subsidiary of SoftBank Group Corp. , and funds and accounts advised by T. Rowe Price Associates , Inc. The closing is subject to customary closing conditions , as well as the closing of the Omniome acquisition . Advisors Centerview Partners served as financial advisor to PacBio in connection with the acquisition . Cowen served as the exclusive placement agent to PacBio . Jefferies LLC acted as exclusive financial advisor to Omniome . Wilson Sonsini Goodrich and Rosati served as counsel for PacBio , and Cooley LLP served as counsel for Omniome . Preliminary Second Quarter Revenue