Sequenom of the USA set to merge with the UK's Gemini Genomics

Sequenom of San Diego, USA, has announced plans to acquire GeminiGenomics of the UK (which is listed on the Nasdaq) in a deal valued at almost $230 million. Under the terms of the agreement, which extends an existing alliance between the two firms and is expected to close in the third quarter, Sequenom will issue approximately 12.9 million new shares of its common stock, which closed on May 25 at $17.68 per share.

Holders of Gemini ordinary shares will receive 0.20 share of the newly-issued Sequenom common stock in exchange for each ordinary share they own. Those who hold Gemini American Depository Shares will receive 0.40 share of Sequenom's newly-issued common stock in exchange for each ADS, the companies said. This represents a 26% premium over Gemini's ADS closing price of $5.60 on May 25.

Paul Kelly, Gemini's chief executive, said the merger "is a marriage of genetic analysis technology and clinical genomics" which will establish "a gene and drug target discovery powerhouse." He added that both parties see the benefits that will come from uniting forces and resources to accelerate disease gene discovery.