Genomic diagnostics company Veracyte, Inc. (VCYT) and precision oncology company Decipher Biosciences, Inc. announced Wednesday that they have entered into a definitive agreement through which Veracyte will acquire Decipher for a total consideration of $600 million, consisting of $250 million in cash and up to $350 million in stock, subject to customary purchase price adjustments.
The transaction will further solidify Veracyte's global leadership in the genomic cancer diagnostics market while accelerating revenue growth. It will also provide Veracyte with increased operational flexibility by including Decipher Bioscience's state-of-the-art facilities in Southern California and its highly qualified team.
The transaction, which has been unanimously approved by Veracyte's board of directors and by an independent special committee appointed by the Decipher Biosciences board of directors, is expected to close by May 2021, subject to regulatory approval and the satisfaction of other customary conditions.
Following the closing of the transaction, Decipher Biosciences will become a wholly-owned subsidiary of Veracyte. Decipher Bioscience's laboratory and other operations will remain in San Diego.
Decipher's president and CEO Tina Nova, who has been a member of Veracyte's board since 2015, is resigning from the Veracyte board in connection with the transaction. Nova will become general manager of Veracyte's urologic cancer business unit.
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