China's BGI-Shenzhen to acquire Complete Genomics; Mitsui ups stake in Arch Pharmalabs

Complete Genomics (Nasdaq: GNOM) yesterday revealed that it has entered into a definitive merger agreement to be acquired by China’s BGI-Shenzhen for a consideration of $117.6 million, sending the US firm’s share leaping 15% to $3.07 in morning trading. The transaction is expected to be completed in early 2013.

Through this agreement, a wholly-owned US subsidiary of BGI will launch a tender offer to purchase all outstanding shares of common stock of California-based Complete for $3.15 per share in cash, without interest. This price represents an around 54% premium to the $2.04 closing price per share on June 4, 2012, the last trading day prior to Complete's announcement that it was undertaking an evaluation of strategic alternatives to secure the financial resources needed for continued commercialization of its technology.

Complete's board of directors has unanimously recommended that stockholders accept the offer and tender their shares. In addition, Complete and an affiliate of BGI have entered into an agreement under which Complete will be provided with up to $30 million in bridge financing for its operations following the signing of the merger accord.