Fulgent Genetics has signed a definitive agreement to buy specific assets of Bako Diagnostics and to acquire StrataDx, two US-based laboratories, for a combined purchase price of around $55.5m.
Closure of the acquisitions is anticipated in the first half of next year, contingent on customary closing conditions and regulatory clearances.
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The total purchase price will be paid from Fulgent’s cash on hand.
The addition of Bako and StrataDx is anticipated to bolster Fulgent’s lab services business with the inclusion of new products and services, widening its national client base as well as sales team, and increasing its team of pathologists.
Bako offers a comprehensive testing menu that includes anatomic pathology, molecular genetic testing, and peripheral neuropathy immuno-histochemical testing.
StrataDx provides dermatopathology testing services and is Clinical Laboratory Improvement Amendments (CLIA)-certified and State of Massachusetts-licenced.
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By GlobalDataFulgent is said to have invested in AI and digital pathology, including the Eziopath image management system launch.
The adoption of these technologies is expected to enhance the capacity, turnaround times and quality of services at both Bako and StrataDx.
The acquisition will also add to Fulgent’s test portfolio, Bako’s polymerase chain reaction (PCR) tests, which are designed for cost effectiveness and rapid turnaround.
By combining Bako’s and StrataDx’s testing offerings and national sales teams, Fulgent aims to provide a broader range of diagnostic services across the US.
The addition of Bako’s salesforce will nearly double the size of Fulgent’s pathology sales team.
Bako’s client network will give Fulgent access to further patients at important points in the healthcare system.
Piper Sandler & Co. served as Fulgent’s exclusive financial advisor, while Mintz Levin, Cohn, Ferris, Glovsky and Popeo provided legal counsel.
EV Health Partners was the exclusive financial advisor to Consonance Capital Partners, Bako, and StrataDx, with Latham & Watkins serving as legal counsel.
Fulgent chairman and CEO Ming Hsieh: “With the addition of Bako and StrataDx, we will be able to broaden our capabilities in the pathology testing market and further leverage our investments in AI to improve efficiency and quality, which will drive continued momentum in our laboratory services business.”
