- Labcorp Selected as Winning Bidder in Court-Supervised Sale Process, Subject to Court and Regulatory Approvals -
- $239 Million Cash Bid Includes Acquisition of Substantially All of the Company's Assets, Ensuring Business Continuity for Customers, Partners and Employees -
SAN FRANCISCO, April 24, 2024 /PRNewswire/ -- Invitae (OTC:NVTA), a leading medical genetics company, announced that Labcorp (NYSE: LH), a global leader of innovative and comprehensive laboratory services, has been selected as the winning bidder in the Company's auction in its sale process under Section 363 of the U.S. Bankruptcy Code. Labcorp will acquire substantially all of the Company's assets on a going concern basis for $239 million in cash consideration, plus other non-cash consideration.
"The agreement with Labcorp marks a significant step in our financial restructuring and supports our efforts to continue to deliver innovative and industry leading products and services for healthcare," said Ken Knight, president and chief executive officer of Invitae.
The hearing to approve the sale is currently scheduled for May 6, 2024. With Court approval, as well as customary regulatory approvals and closing conditions, Labcorp and Invitae anticipate completing the sale process in the third quarter of 2024.
Invitae is advised in this matter by Kirkland & Ellis LLP as legal counsel, Moelis & Company LLC as investment banker, and FTI Consulting, Inc. as financial and communications advisor.
About Invitae
Invitae (OTC: NVTA) is a leading medical genetics company trusted by millions of patients and their providers to deliver timely genetic information using digital technology. We aim to provide accurate and actionable answers to strengthen medical decision-making for individuals and their families. Invitae's genetics experts apply a rigorous approach to data and research, serving as the foundation of their mission to bring comprehensive genetic information into mainstream medicine to improve healthcare for billions of people.
To learn more, visit invitae.com and follow for updates on LinkedIn, X, Instagram, and Facebook @Invitae.
About Labcorp
Labcorp (NYSE: LH) is a global leader of innovative and comprehensive laboratory services that helps doctors, hospitals, pharmaceutical companies, researchers and patients make clear and confident decisions. We provide insights and advance science to improve health and improve lives through our unparalleled diagnostics and drug development laboratory capabilities. The company's more than 67,000 employees serve clients in approximately 100 countries, provided support for 84% of the new drugs and therapeutic products approved in 2023 by the FDA, and performed more than 600 million tests for patients around the world. Learn more about us at www.labcorp.com.
Safe Harbor Statements
Certain statements made in this press release, including, but not limited to, statements about Invitae's continued operation of the business as "debtors-in-possession"; Invitae's ability to consummate the planned sale of the business pursuant to the chapter 11 case; Invitae's ability to pay its current obligations when due and satisfy its continuing obligations, including, but not limited to, employee benefits and wages, vendors and suppliers of goods and services, and insurance and tax obligations; Invitae's expectation that the transactions contemplated by the Transaction Support Agreement ("TSA") and the chapter 11 cases are consummated by the Bankruptcy Court according to the terms outlined in the TSA, and that the transactions result in significant reduction of its debt balance; and any assumptions underlying any of the foregoing may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially and reported results should not be considered as an indication of future performance. These risks and uncertainties include, but are not limited to: risks and uncertainties regarding Invitae's ability to successfully consummate and complete a plan under chapter 11 or any strategic or financial alternative as well as Invitae's ability to implement and realize any anticipated benefits associated with any alternative that may be pursued, including the asset sales and wind down of operations; Invitae's ability to continue operating in the ordinary course while the chapter 11 cases are pending; potential adverse effects of the chapter 11 cases on Invitae's business, financial condition, liquidity and results of operations; Invitae's ability to obtain timely approval by the Bankruptcy Court with respect to motions filed in the chapter 11 cases; objections to Invitae's recapitalization process or other pleadings filed with the Bankruptcy Court that could protract the chapter 11 cases; employee attrition and Invitae's ability to retain senior management and other key personnel due to the distractions and uncertainties caused by the chapter 11 cases; Invitae's ability to improve its liquidity and long-term capital structure and to address its debt service obligations through the restructuring; Invitae's ability to comply with the restrictions imposed by the terms and conditions of the potential financing arrangements; Invitae's ability to effectively implement its strategic initiatives; Invitae's liquidity needs to operate its business and execute its strategy, and related use of cash; Invitae's ability to maintain relationships with suppliers, customers, employees, regulatory authorities and other third parties as a result of the chapter 11 cases; the effects of the restructuring and the chapter 11 cases on Invitae and on the interests of various constituents, including holders of Invitae's common stock; the Bankruptcy Court's rulings in the chapter 11 cases, including approvals related to the terms and conditions of any plan under chapter 11, the agreement with Labcorp and the outcome of the chapter 11 cases, generally; the length of time that Invitae will operate under chapter 11 protection and the continued availability of operating capital during the pendency of the chapter 11 cases; risks associated with third-party motions in the chapter 11 cases, which may interfere with Invitae's ability to consummate a plan under chapter 11 or an alternative restructuring; increased administrative and legal costs related to the chapter 11 process; other litigation and inherent risks involved in a bankruptcy process; Invitae's public securities' potential liquidity and trading; any impact resulting from the delisting of its common stock from the New York Stock Exchange and trading instead on the OTC Pink Marketplace; and the other risks and uncertainties disclosed in Invitae's annual and quarterly periodic reports and other documents filed with the U.S. Securities and Exchange Commission. Additionally, there can be no assurances that the sale of the business will receive regulatory approval or that any sale will be successfully consummated. Forward-looking statements speak only as of the date they are made. Invitae undertakes no duty or obligation to update or revise these forward-looking statements, whether as a result of new information, future developments, or otherwise, except as required by law.
Invitae Contacts:
Investor Relations
Hoki Luk
[email protected]
Public Relations
Amy Sands Hadsock
[email protected]
SOURCE Invitae Corporation
