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Konica Minolta to Acquire Ambry Genetics for $1B

NEW YORK (GenomeWeb) – Japanese digital technology firm Konica Minolta has signed a definitive agreement to acquire Ambry Genetics for up to $1 billion in cash, the companies announced today.

Ambry offers genetic tests for a variety of inherited and non-inherited diseases, as well as for clinical specialties including oncology, cardiology, pulmonology, neurology, and general genetics. Founded in 1999, by President and Chairman Charles Dunlop and CEO Aaron Elliott, Ambry has performed more than 1 million genetic tests and identified more than 45,000 mutations in at least 500 different genes. 

According to Konica Minolta, the acquisition will build off its existing capabilities in medical imaging — which include its high-sensitivity tissue testing immunostaining technology — and represents its first step toward building a presence in the precision medicine field. Konica Minolta said it plans to bring Ambry’s technology first to Japan and then to Europe.

"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," Konica Minolta President and CEO Shoei Yamana said in a statement. "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."

Under the terms of the deal, Konica Minolta's Konica Minolta Healthcare Americas (MHUS) subsidiary will pay Ambry $800 million upfront. MHUS will put up 60 percent of this payment, with Innovation Network Corporation of Japan providing the remaining 40 percent. Additionally, Ambry shareholders stand to receive up to $200 million in incremental consideration based on certain financial metrics over the next year years.

The transaction is expected to close in the third quarter, after which Ambry will become a subsidiary of Konica Minolta operating under its current name and at its existing headquarters in Aliso Viejo, California.

Additional terms were not disclosed.

"As a part of Konica Minolta, we will have the resources, technology, and scale to advance biomedical research and enable the matching of more patients in more countries with specialized medicines that target the underlying cause of their illness," Dunlop added in the statement.