Standard BioTools to sell SomaLogic to Illumina for $350M upfront payment

Standard BioTools (LAB) announced the strategic sale of SomaLogic to Illumina (ILMN), including SomaScan Assay Services, Authorized Sites and KREX for an upfront payment of $350M in cash at closing and up to $75M in cash in near-term milestone payments, for aggregate cash consideration of up to $425M, plus specified sales royalties on SOMAmer-based next-generation sequencing library preparation kits. Standard BioTools will retain certain Single SOMAmer reagent commercialization rights. The transaction significantly simplifies the operating structure of Standard BioTools and enables the achievement of adjusted EBITDA break-even. Standard BioTools is pursuing a focused and disciplined M&A strategy aimed at acquiring underappreciated, high-potential assets with validated science and a clear path to commercialization. The strategy targets technologies with strong margin potential, recurring revenue models and exposure to attractive end markets such as pharma, bioprocessing, and clinical research. The Company evaluates acquisitions through a strict framework and integrates using SBS to drive execution, streamline operations and accelerate value creation. In a capital-constrained but innovation-rich environment, Standard BioTools is well positioned, with a management team of seasoned operators and a strong balance sheet, to lead consolidation across the life science tools sector. Under the terms of the transaction, Standard BioTools will receive an upfront payment of $350M in cash, payable at the closing of the transaction, subject to customary adjustments, and up to $75M in earnout payments, payable upon the achievement of specified targets for net revenue generated from SOMAmer-based assay services and sales of certain SOMAmer-based NGS library preparation kits and array kits in fiscal years 2025 and 2026. Standard BioTools will also receive a 2% royalty on net revenues generated from sales of SOMAmer-based NGS library preparation kits for 10 years following the closing of the transaction and a co-exclusive license for the intellectual property relating to Single SOMAmer commercialization in singleplex affinity assays. The transaction is expected to close in the first half of 2026, subject to receipt of required regulatory approvals, including receipt of clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and satisfaction of other customary closing conditions. The transaction has been unanimously approved by both the Standard BioTools Board of Directors and a Special Committee of the Standard BioTools Board of Directors.