Exact Sciences buys 2 companies for $2.56B

In announcements this week, Exact Sciences outlined the acquisition of a blood-based multicancer screening company and the agreement to sell $869 million in common stock. Exact Sciences will acquire Thrive Earlier Detection Corp. for cash and stock consideration of up to $2.15 billion, according to a definitive agreement. The transaction was unanimously approved by both companies’ directors and is expected to close during the first quarter of next year.

Exact Sciences also announced that it has acquired Base Genomics, an Oxford, England-based epigenetics company working to set a new standard in DNA methylation analysis, one of the most promising approaches to detecting cancer in its earliest stages, for $410 million.

Additionally, Exact Sciences will sell an aggregate of 8,605,483 shares of its common stock in a registered direct offering to 10 institutional investors. Each share will be sold at $101.00, resulting in gross proceeds of approximately $869.2 million. The offering is expected to close on or about Oct. 29, 2020. In its 2020 third-quarter earnings report, the company reported total revenue of $408.4 million, compared to $218.8 million for the third quarter of 2019.