Labcorp announced that it will acquire Invitae Corporation‘s assets auctioned through a voluntary bankruptcy protection process. This comes just a few months after the genetic test maker filed for bankruptcy. Labcorp will acquire all of the bankrupt firm’s assets on a going concern basis for $239 million in cash consideration and other non-cash consideration.
In February 2024, Invitae filed for voluntary Chapter 11 protection in a U.S. bankruptcy court and said that it intended to pursue a sale process. Invitae’s estimated assets were in the $500 million – $1 billion range, while its liabilities were in the $1 billion – $10 billion range, according to the bankruptcy filing.
Invitae is a medical genetics company that was created as a subsidiary of Genomic Health in 2010 and then spun-off in 2012. The company’s tests include multiple genes associated with hereditary cancer, neurological disorders, cardiovascular disorders, pediatric disorders, metabolic disorders and other hereditary conditions.
LabCorp, an S&P 500 company, is a global life sciences company that is integrated with guiding patient care, providing clinical laboratory and end-to-end drug development services. The company provides information to help doctors, hospitals, pharmaceutical companies, researchers and patients make decisions. LabCorp has more than 80,000 employees across more than 100 countries and had reported annual revenue of $12.16 billion in 2023, according to the company’s 2023 fourth quarter and full-year results.
“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,” said Ken Knight, president and chief executive officer of Invitae.
The hearing to approve the sale is currently scheduled for May 6, 2024. With court approval, as well as customary regulatory approvals and closing conditions, Labcorp and Invitae anticipate completing the sale process in the third quarter of 2024. Invitae was advised by Kirkland & Ellis LLP as legal counsel, Moelis & Company LLC as investment banker and FTI Consulting as financial and communications advisor.
According to data captured in the LevinPro HC database, this acquisition represents the 42nd Laboratories, MRI and Dialysis transaction of 2024, and the 24th in the diagnostics specialty. During 2023, there were 125 Laboratories, MRI and Dialysis announced, 63 of them in the diagnostics specialty.
