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SoftBank to lead nearly $1.2 billion investment in diagnostics firm Invitae

Published 2021-04-05, 07:43 a/m
© Reuters. FILE PHOTO: SoftBank Corp's logo is pictured at a news conference in Tokyo

(Reuters) -Invitae Corp said on Monday a group of investors including SoftBank Group Corp will invest $1.15 billion in the U.S. genetic diagnostics company.

It said the investment, to be used for its growth initiatives, will be in convertible senior notes, which will bear 1.5% interest per year.

The company said the notes will have an initial conversion price of $43.18 per share of its common stock, representing a premium of 10.2% to Invitae's closing price on Friday.

Earlier this year, SoftBank invested $900 million in gene sequencing firm Pacific Biosciences of California Inc.

San Francisco-based Invitae offers genetic testing services for a range of diseases, including skin and eye conditions, cancers as well as reproductive health in and outside the United States.

© Reuters. FILE PHOTO: SoftBank Corp's logo is pictured at a news conference in Tokyo

Shares of the company, which started operations in 2010, have more than tripled in the past twelve months, giving it a market valuation of $7.7 billion.

J. Wood Capital Advisors LLC and Perella Weinberg Partners LP were financial advisers to Invitae on the transaction.

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