Benzinga | Jun 30, 2021 11:21AM EDT

Twist Bioscience Scoops Up NGS Library Prep Tools Developer For $35M

* Twist Bioscience Corporation (NASDAQ:TWST) has acquired iGenomX, a developer of multiplex library preparation tools for next-generation sequencing workflows, for $35 million.

* Twist said the acquisition would enhance its ability to support multiplex sequencing preparations across multiple markets and accelerate its conversion of customers from static microarray platforms to genotyping-by-sequencing workflows.

* iGenomX, founded in 2012, develops and commercializes a high-throughput rapid library prep technology, sells commercial library construction.

* The deal included an initial $500,000 cash payment and $29.5 million in Twist stock, as well as a contingency consideration of $5 million in Twist shares.

* The company noted that it expects the financial impact of the acquisition on its burn rate to be minimal for both fiscal years 2021 and 2022 and expects revenues of approximately $4 million to $6 million to materialize in 2023.

* "All in, this seems to be a nice, differentiated tuck-in for Twist that could become a more meaningful revenue opportunity over the longer term [that] leverages Twist's channel presence within NGS," Evercore ISI analyst Vijay Kumar wrote.

* Price Action: TWST shares are down 0.23% at $134.34 during the market session on the last check Wednesday.