Labcorp to acquire Invitae in strategic deal

by / ⠀News / April 26, 2024
Labcorp Invitae Acquisition

Invitae Corporation, a leading company in medical genetics, recently confirmed an agreement with Labcorp for the latter’s strategic acquisition. The deal, a significant milestone for Invitae, was secured under Section 363 of the U.S. Bankruptcy Code and sees Labcorp as the top bidder.

This important arrangement will strengthen Invitaeā€™s growth potential, tapping into Labcorp’s expansive resources and market influence. It aims to navigate the best possible outcomes for all parties involved, ensuring a fair and transparent process.

The proposed deal awaits court and regulatory nods and is set to conclude in the third quarter of 2024. The transaction will usher in significant organizational restructuring, with closeness in communication and collaboration vital for a seamless transition.

Post-approval, Invitae will be at the receiving end of a $239 million cash investment from Labcorp, against majority of its assets.

Strategic acquisition of Invitae by Labcorp

This is part of a commitment to ensure Invitae’s operational continuity for all concerned parties and to set the stage for sustained growth.

Labcorp will then manage Invitae’s operational costs and management, investing in strategies aimed at optimizing future profit. This acquisition will augment Labcorp’s scientific framework by integrating Invitae’s innovative portfolio and fortifying the genetic testing market.

Invitae’s CEO expressed optimism on this financial restructuring, stating it will bolster their commitment to innovate and push toward their goals relentlessly. They also appreciated their team’s tenacity amidst multiple challenges and reassured customers of exceeding service expectations.

To facilitate this acquisition, Invitae will collaborate with Kirkland & Ellis LLP as legal advisors, Moelis & Company LLC for investment banking consultations, and FTI Consulting, Inc., for financial and communication counsel. The deal will be under scrutiny on May 6, 2024, set as the hearing date.

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Even with the upcoming changes, Invitae commits to continue routine interactions and meet financial obligations with all its stakeholders. It also plans to mitigate its debt post court approvals of the proposed sale, intending to maintain a stable commercial relationship with its business partners, and guide them through this challenging phase.

About The Author

April Isaacs

April Isaacs is a staff writer and editor with over 10 years of experience. Bachelor's degree in Journalism. Minor in Business Administration Former contributor to various tech and startup-focused publications. Creator of the popular "Startup Spotlight" series, featuring promising new ventures.

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