July 26, 2017 | Announcements

GCA Advises Konica Minolta, Inc. on Its Acquisition of Ambry Genetics Corporation

We are pleased to announce that our client, Konica Minolta, Inc. (TSE:4902), has entered into a definitive agreement to acquire Ambry Genetics Corporation. This transaction marks GCA’s 26th cross-border deal of 2017.

The transaction is partially funded by Innovation Network Corporation of Japan (INCJ). Under the terms of the transaction $800 million will be paid at closing. There will be an additional payment of up to $200 million based on certain financial metrics over the next two years. In total, the acquisition will be valued up to $1 billion. Konica Minolta and INCJ will hold ownership stakes of 60% and 40%, respectively.

The transaction is the largest ever for Konica Minolta and marks a strategic shift for the Japanese firm’s healthcare business as it seeks a leading position in precision medicine.

Ambry Genetics, headquartered in Aliso Viejo, California, offers the industry’s most comprehensive suite of genetic testing solutions for hereditary and non-hereditary diseases as well as numerous clinical specialties. Considered a pioneer in genetic testing, the company has performed more than one million genetic tests and identified more than 45,000 mutations on at least 500 different genes.

Konica Minolta views the acquisition as the first step in creating a new medical platform in precision medicine – an emerging approach to healthcare that uses genetic or other molecular analyses to match patients with the most appropriate treatments or interventions for their specific diseases. Konica Minolta’s High-Sensitivity Tissue Testing (HSTT) – an advanced immunostaining technology – and Ambry’s genetic diagnostic technology are essential technologies for patient grouping and drug development.

Shoei Yamana, President and CEO of Konica Minolta said: “The future of medicine is patient-focused. Together with Ambry, we will have the most comprehensive set of diagnostic technologies for mapping an individual’s genetic and biochemical makeup, as well as the capabilities to translate that knowledge into information the medical community can use to discover, prevent, and cost-effectively treat diseases. This will not only serve as the future foundation for our healthcare business, but will pave the way for a fundamental shift in the way medicine is practiced globally.”

The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in October 2017.

GCA acted as exclusive financial advisor to Konica Minolta in connection with this transaction.

About GCA
GCA is a premier global investment bank serving a broad client base through a range of advisory services including mergers and acquisitions, debt and equity capital markets, private funds, restructuring, and asset management. GCA is a global advisor providing insightful advice and is focused on building long-term relationships based on trust. GCA delivers deep expertise in many key industries and has a particular focus in Technology, Software, Media, Digital Media, Communications, Industrials and Industrial Technology, Healthcare, Financial Institutions, FinTech and Business Services. GCA has teams of highly experienced bankers in San Francisco, New York, Tokyo, Frankfurt, London, Manchester, Milan, Mumbai, Munich, New Delhi, Osaka, Shanghai, Singapore, Tel Aviv and Zurich. For more information, visit gcaglobal.com.

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