A subsidiary of Japanese office equipment manufacturer Konica Minolta Inc. will acquire Aliso Viejo-based genetic testing firm Ambry Genetics Corp. in a deal valued at up to $1 billion, according to a statement released by the two companies Thursday.
Konica Minolta said the acquisition will allow the Tokyo-based firm to expand into precision medicine, in which genetic or molecular analysis helps determine the treatment for a patient’s particular disease.
“The future of medicine is patient-focused,” Shoei Yamana, Konica Minolta’s president, said in a statement. “This will not only serve as the future foundation for our healthcare business, but will pave the way for a fundamental shift in the way medicine is practiced globally.”
The deal represents a shift for Konica Minolta, which was known for its cameras, printers and photocopiers. The company ended its camera business more than a decade ago and has made moves into the healthcare arena, such as in diagnostic imaging and ultrasound systems.
Ambry will remain headquartered in Aliso Viejo and will continue to operate under its own name. The company has 700 employees.
Ambry founder and President Charles Dunlop said in a statement that being part of Konica Minolta will give the company the “resources, technology, and scale to advance biomedical research.”
Under the terms of the transaction, Konica Minolta Healthcare Americas Inc. will pay $800 million in cash up front to Ambry. The subsidiary of Konica Minolta will invest 60%, while a public-private partnership called Innovation Network Corp. of Japan will pay the remaining 40%.
Ambry shareholders will receive up to $200 million in “incremental consideration based on certain financial metrics” over the next two years, leading to the total of up to $1 billion.
The deal is expected to close by the end of the year.
1:35 p.m.: This article was updated to include Ambry’s total number of employees.
This article was originally published at 1 p.m.