Benzinga | May 5, 2021 08:38AM EDT

NeoGenomics Exercises Option To Acquire Remaining Stake In Inivata For $390M

* NeoGenomics Inc (NASDAQ: NEO) has agreed to acquire the remaining stake in Inivata Ltd, a commercial-stage liquid biopsy platform company headquartered in England.

* The acquisition follows a $25 million minority equity investment by NeoGenomics in Inivata in May last year, at which time NeoGenomics was granted a fixed price option to purchase the remainder of Inivata for $390 million.

* The cash purchase price will be funded with balance sheet cash and a private placement of equity, with the expected gross proceeds of $200 million.

* The acquisition is expected to close concurrently with the private placement in June 2021.

* Inivata will become a liquid biopsy-focused division alongside NeoGenomics' growing clinical, pharma and informatics divisions. Current Inivata CEO Clive Morris will become the President of Inivata and report to Mark Mallon, CEO of NeoGenomics.

* Private Placement: NeoGenomics will sell 4.4 million shares at $45.00 per share

* Price Action: NEO shares down 4.85% to $45.26 in the premarket session on the last check Wednesday.