Twist Bioscience spins out DNA data storage into independent Atlas Data Storage

Twist Bioscience (TWST) announced that the company has spun out its DNA data storage technology application as an independent company, named Atlas Data Storage. Under the terms of the contribution and license agreements, Twist assigned and licensed its DNA data storage technology to Atlas in exchange for Twist receiving a minority ownership interest upon close, an upfront cash payment and a secured promissory note. Twist retains an ownership stake in Atlas and may participate in the upside of DNA data storage through future technology and commercial milestone payments, and a revenue share through royalties on future sales of Atlas’ products and services. In addition, Twist will benefit from technology advancements made by Atlas where it applies to Twist’s product groups. Emily Leproust, CEO and co-founder of Twist will serve on the board of directors of Atlas. The companies will operate independently with separate management teams. George Kadifa, managing director of Sumeru Equity Partners, will serve as executive chairman of the Atlas board and Varun Mehta, will serve as CEO of Atlas. Twist co-founder and general manager of DNA data storage, Bill Banyai will move to Atlas and serve as its CTO. An independent special committee of the Twist board of directors approved the process of the spin out and the terms of the agreement. Jefferies served as financial advisor to the independent special committee and to Twist.