Labcorp was the winning bidder in the court-supervised auction of Invitae's assets, obtaining substantially all of the San Francisco-based company's business for $239 million in cash consideration with other noncash consideration.
In a statement, Labcorp noted that it expects the acquisition to generate approximately $275 to $300 million in annual revenue, mostly in specialty testing areas such as oncology and rare diseases.
The court hearing to approve the sale is currently scheduled for May 6, 2024. Following bankruptcy court approval, as well as customary regulatory approvals and closing conditions, the two companies anticipate completing the transaction in the third quarter of 2024.
Invitae filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of New Jersey in February. Prior to the filing, Invitae sold its reproductive health portfolio to Natera.
"The agreement with Labcorp marks a significant step in our financial restructuring and supports our efforts to continue to deliver innovative and industry leading products and services for healthcare," Ken Knight, president and CEO of Invitae, said in a statement.
Kirkland & Ellis LLP are serving as Invitae's legal counsel, Moelis & Company LLC as the investment banker, and FTI Consulting as the financial and communications adviser. Hogan Lovells and Kilpatrick Townsend are serving as Labcorp's legal counsel.
