On August 8, Recursion and Exscientia announced plans to merge. The combined company is estimated to achieve annual synergies of approximately $100 million with a runway extending into 2027.
Exscientia is a global pharmatech company using patient-first artificial intelligence to discover better drugs. Exscientia combines precision design with integrated experimentation, aiming to invent and develop the best possible drugs in the most efficient manner. According to the company’s financial report, the company generated revenue of $25.6 million for the 12 months ending on December 31, 2023.
Recursion is a clinical stage biotechnology company decoding biology to industrialize drug discovery. Recursion is headquartered in Salt Lake City, Utah, where it is a founding member of BioHive, the Utah life sciences industry collective. Recursion also has offices in Toronto, Montréal and the San Francisco Bay Area. In 2023 the company made a revenue of $43.87 million, which is an increase over 2022, when it made a revenue of $39.68 million.
Under the terms of the transaction agreement, which were unanimously approved by the boards of directors of both companies, Exscientia shareholders will receive 0.7729 shares of Recursion Class A common stock for each Exscientia ordinary share they own, with fractional shares paid in cash. Based on the fixed exchange ratio, Recursion shareholders will own approximately 74% and Exscientia shareholders will own approximately 26% of the combined company.
The combined company, which will be named Recursion, trade on the NASDAQ, while maintaining a significant presence in the United Kingdom.
Allen & Company LLC acted as exclusive financial advisor to Recursion and Wilson Sonsini Goodrich & Rosati acted as legal counsel. Centerview Partners LLC acted as exclusive financial advisor to Exscientia and A&O Shearman acted as legal counsel.
According to data captured in the LevinPro HC database, this acquisition marks the 38th Pharmaceutical transaction of the year. Throughout 2023, there were 107 Pharmaceutical deals reported.
