Genetic testing company Invitae has entered into an agreement to acquire genomics firm Genosity for $200m, alongside landing a $1.15bn investment to support its future growth.

The acquisition will bring Genosity’s software and laboratory products, which are designed to enable development and deployment of complex sequencing-based tests, to Invitae’s platform.

Invitae said the deal will accelerate the time to market and decentralisation of Invitae’s personalised oncology diagnostics, which include three devices under development that have received breakthrough device designation from the US Food and Drug Administration (FDA).

Genosity has already worked with Invitae on a number of projects and clinical research trials in the past.

Genosity president and chief technology officer Robert Daber said: “In Invitae we have found a like-minded partner focused on making genomics more affordable and accessible worldwide.”

The $200m acquisition will consist of approximately $120m in cash and $80m in shares of Invitae common stock.

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The transaction has been unanimously approved by the boards of both companies and is expected to close in Q2 2021.

Invitae has also announced a $1.15bn investment led by SB Management, a subsidiary of Softbank Group.

Invitae co-founder and CEO Sean George said: “This investment will help us continue to fuel our growth, including expanding our platform, services and menu through both in-house development and the addition of complementary companies and technologies as we work to build a differentiated platform uniquely capable of driving the transition to personalised medicine.”

Invitae has made several acquisitions over the past two years, notably a $1.4bn takeover of ArcherDX last year, which moved the firm into the somatic cancer testing space.