What happened
An upcoming merger involving SomaLogic (SLGC +0.00%) wasn't making investors happy on Wednesday. On its news that it would be combining with medical technology peer Standard BioTools (FLDM +0.94%), investors traded out of the shares. Ultimately, SomaLogic closed the day 10% lower, and Standard BioTools didn't fare too well either.
So what
In a joint press release, SomaLogic and Standard BioTools announced they had signed a definitive agreement to blend into one entity. Under the terms of the all-stock deal, SomaLogic investors are to receive 1.11 common shares of Standard BioTools stock for each SomaLogic common share they hold. When the merger closes, SomaLogic stockholders will own roughly 57% of the combined entity.
However, a Standard BioTools executive will be piloting the ship -- current Standard BioTools CEO Michael Engholm will serve in the same capacity in the new company. He will also hold a seat on the board of directors. Additionally, the bulked-up company will bear the name of Standard BioTools.
In the press release, the two specialty healthcare companies ticked off a set of reasons why joining forces is advantageous for them now. Among these are product portfolio diversification, cross-selling opportunities, improved scalability, and cost savings through synergies.
NASDAQ: SLGC
Key Data Points
Now what
Both sides waxed bullish in their press release. SomaLogic quoted its interim CEO Adam Taich as saying, "This transaction brings together two organizations with mutual visions and values to create a multi-omics leader with the financial strength to self-fund growth investments and accelerate research insights." Investors are skeptical of this, however, as they traded both stocks down on Wednesday.
The agreement was unanimously approved by the boards of Standard BioTools and SomaLogic. The two companies expect the merger to close in the first calendar quarter of 2024.
