Sema4 Strengthens AI-Driven Genomic, Clinical Data Platform With $623M GeneDx Acquisition

Sema4 Holdings Corp SMFR has agreed to acquire OPKO Health Inc's OPK wholly-owned subsidiary, GeneDx Inc, for approximately $623 million.

• Sema4 will acquire GeneDx for an upfront payment of $150 million in cash plus 80 million shares in Sema4, with up to an additional $150 million revenue-based milestones over the next two years.
• Together, Sema4 and GeneDx will be one of the largest providers of genomic clinical testing in the U.S., with a projected $350 million in pro forma 2022 revenue.
• Katherine Stueland, President and CEO of GeneDx, will be appointed as Sema4 co-CEO and board member.
• In conjunction with the transaction, board member Jason Ryan will assume the role of Executive Chair of Sema4's board. 
• As part of the transaction, Sema4 has also announced a $200 million private placement at $4/share from a syndicate of institutional investors, including Pfizer Inc PFE. 
• The acquisition and the private placement are expected to close in Q2 2022.
• Sema4 expects FY22 sales of $215 million - $225 million, implying 23-29% growth excluding revenue associated with COVID-19.
• Sema4 also expects to result over 350,000 tests in 2022, excluding COVID-19 tests. 
• In December, Sema4 decided to discontinue COVID-19 testing services by March 31, 2022. 
• The company held cash and equivalents of approximately $400 million as of December 31, 2021.
• Price Action: SMFR shares are down 4.58% at $3.86, and OPK is up 1.77% at $4.61 during the market session on the last check Tuesday.