Dive Brief:
- Scientific instruments maker Bruker will pay about $392.6 million in cash to acquire most of the assets of Nanostring, a provider of research tools for spatial biology and gene expression, Nanostring said Wednesday.
- The sale will conclude Nanostring’s bankruptcy proceeding and restructuring process, the Seattle-based company said. When it filed for Chapter 11 protection in February, Nanostring disclosed it had received multiple early indications of interest from possible acquirers.
- Bruker’s acquisition, which includes the assumption of certain liabilities, will allow Nanostring’s business operations and product development initiatives to continue for customers and substantially all of the company’s employees, Nanostring said.
Dive Insight:
At the time of its bankruptcy filing, Nanostring said a large jury award last year in a patent infringement lawsuit by rival 10x Genomics forced the company to take action to protect its business.
In acquiring Nanostring, Bruker will strengthen its position in the emerging field of spatial technology for disease diagnosis and treatment, according to Leerink Partners, which estimates the sector ultimately could become a $12 billion market.
Billerica, Massachusetts-based Bruker is acquiring Nanostring at a roughly 80% premium to a $220 million stalking horse bid received in March from Patient Square Capital, Leerink analyst Puneet Souda said in a research note. The liabilities to be assumed are likely some portion of the damages awarded to 10x Genomics in the patent case, the analyst said.
Souda wrote that the acquisition is a “positive for the company’s post genomics era outlook longer-term.”
TD Cowen analyst Dan Brennan noted Nanostring has several patent cases ongoing in the European Union and U.S. involving 10x Genomics that were paused after the bankruptcy filing, and the timeline for the litigation to be resolved is unclear.
“We expect [Bruker] would not conduct this M&A unless they felt they had a strong IP position,” Brennan wrote in a research report.
The acquisition, which was agreed upon under the court-supervised sale process, is expected to close in early May, according to Nanostring. Bruker submitted a qualifying bid on April 12, and a revised offer from the company was selected as the winning bid following an auction on April 16. The agreement remains subject to bankruptcy court approval and other customary closing conditions.
“Our loyal customers, suppliers and employees have stood with us through this dynamic period, and we are grateful for their dedication to the future of our technology and our mission to map the universe of biology,” Nanostring CEO Brad Gray said in a statement.