Exact Sciences Completes Genomic Health Acquisition
Exact Sciences (Madison, WI) finalized its purchase of Genomic Health (Redwood City, CA) on November 8. The deal was initially valued at $2.8 billion when first announced on July 29. However, a subsequent 30% drop in Exact’s shares lowered the deal value to $2.5 billion. Each share of Genomic Health was exchanged for $27.50 in cash (worth $1.1 billion) plus 0.45 shares
of Exact Health (worth $1.4 billion). The net deal worth was approximately $2.2 billion after adjusting for $275 million of cash held by Genomic Health at the time of the close. Thus the deal valued Genomic Health at 4.9 times its projected revenue of $452 million for 2019.
Kim Popovits, 60, Chairman and CEO of Genomic Health, resigned from her positions after the transaction closed. She received a severance package of cash and vested stock and options worth $13.4 million.
Meanwhile, Genomic Health’s Chief Operating Officer Brad Cole has been hired by Exact as General Manager of the company’s newly acquired Oncotype DX franchise.