Transaction Details

July 6, 2017
Tokyo

Sector

Healthcare

Deal Type

M&A

Deal Value

up to $1bn

GCA advises Konica Minolta on its acquisition of Ambry Genetics

GCA acted as exclusive financial advisor to Konica Minolta, Inc. (TSE:4902), on its acquisition of Ambry Genetics Corporation. This transaction marks GCA’s 26th cross-border deal of 2017.

The transaction is partially funded by Innovation Network Corporation of Japan (INCJ). Under the terms of the transaction $800 million will be paid at closing. There will be an additional payment of up to $200 million based on certain financial metrics over the next two years. In total, the acquisition will be valued up to $1 billion. Konica Minolta and INCJ will hold ownership stakes of 60% and 40%, respectively.

The transaction is the largest ever for Konica Minolta and marks a strategic shift for the Japanese firm's healthcare business as it seeks a leading position in precision medicine.

Ambry Genetics, headquartered in Aliso Viejo, California, offers the industry’s most comprehensive suite of genetic testing solutions for hereditary and non-hereditary diseases as well as numerous clinical specialties. Considered a pioneer in genetic testing, the company has performed more than one million genetic tests and identified more than 45,000 mutations on at least 500 different genes.

Konica Minolta views the acquisition as the first step in creating a new medical platform in precision medicine – an emerging approach to healthcare that uses genetic or other molecular analyses to match patients with the most appropriate treatments or interventions for their specific diseases. Konica Minolta’s High-Sensitivity Tissue Testing (HSTT) – an advanced immunostaining technology – and Ambry’s genetic diagnostic technology are essential technologies for patient grouping and drug development.

Shoei Yamana, President and CEO of Konica Minolta, said: "The future of medicine is patient-focused. Together with Ambry, we will have the most comprehensive set of diagnostic technologies for mapping an individual’s genetic and biochemical makeup, as well as the capabilities to translate that knowledge into information the medical community can use to discover, prevent, and cost-effectively treat diseases. 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 transaction is subject to customary closing conditions and regulatory approvals and is expected to close in October 2017.

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