Mountain View, Calif., company Complete Genomics Inc. agreed to a buyout offer from Chinese genomics firm BGI-Shenzen, an acquisition the two businesses are valuing at $117.6 million
The $3.15-a-share offer comes a few months after Complete Genomics said it was looking at strategic alternatives and laying off 55 employees — or roughly 20% of its workforce — to cut costs. The company produces DNA-sequencing technology used for medical research.
The offer represents an 18% premium on Friday's $2.67-a-share closing price, but a 54% premium on the $2.04 closing price on June 4, the trading day before Complete Genomics said it would consider a merger, sale or other major move.
Complete Genomics will continue to operate as a separate business from BGI and will remain headquartered in the Bay Area. The company's board unanimously recommended that stockholders accept the Chinese company's offer.
Once the deal closes, with an expected wrap-up in early 2013, Complete Genomics will get an additional $30 million in bridge financing.
Together, according to the firms' announcement, the partnership could help build up more resources to prevent, diagnose and treat cancers and other genetic diseases.
Complete Genomic's stock jumped as much as 15.7% in Monday trading to $3.09 a share.