Solexa Merging With Illumina

On 13 November 2006, Solexa announced it was merging with Illumina.

The following was posted to the GDT::Biotech::Trekker on 13 November 2006.

Hayward, CA-based Solexa is being acquired by San Diego, CA-based Illumina. Solexa shareholders will receive Illumina shares based upon a $14 Solexa share price. SLXA closed on 10 November 2006 at $9.70. ILMN shares were at $44.05 at the time the $600 million transaction was announced.

   "This exchange ratio will be determined by dividing 
    $14 by the volume weighted average trading price of 
    Illumina common stock as reported by Nasdaq during 
    10 randomly selected days during the 20-day trading 
    period ending five trading days prior to closing. 
    However, if the Illumina average price is equal to 
    or greater than $47.30, then the exchange ratio will 
    be fixed at 0.296, and if the Illumina average price 
    is equal to or less than $40.70, then the exchange 
    ratio will be fixed at 0.344."

According to the press release, the combined companies will create the "only company with genome-scale technology for genotyping, gene expression and sequencing, the three cornerstones of modern genetic analysis."

Edith Genegoo owns 300 SLXA shares and she is looking forward to being an Illumina shareholder.

Exercises
  1. At $14 per SLXA share, Edith's investment in Solexa is worth $_______________.

  2. Edith will own ______ ILMN shares if the weighted ILMN stock price ends up being $47.30 or more.

  3. Edith will own ______ ILMN shares if the weighted ILMN stock price ends up being $40.70 or less.

Related BAB
Update::2007.01.29

Illumina Inc. completed its acquisition of Solexa, Inc. in a stock-for-stock merger. "Solexa stockholders will receive 0.344 of a share of Illumina common stock for each share of Solexa common stock." On 26 January 2007, ILMN closed at $39.22.

Update::2007.02.12

Illumina Inc. announced it "plans to sell $325 million in convertible notes and use $200 million of the proceeds to buy stock in a private transaction." On 9 February 2007, ILMN closed at $34.08.

Update::2007.02.13

Illumina increased the amount of their "convertible notes" from $325 million to $350 million.


Creator: Gerald D. Thurman [gthurman@gmail.com]
Created: 13 November 2006

Creative Commons License
This work is licensed under a Creative Commons License.