UPDATED: Enzymatics jumps into next-gen Dx space with $50M startup buy
Enzymatics, a maker of diagnostic reagents, kits and assays, snatched up a Colorado startup in a deal worth as much as $50 million, giving it access to next-generation genomics diagnostic tech.
Enzymatics, which is based in Beverly, MA, is grabbing Boulder-based ArcherDx with a combination of cash, equity and earnouts based on future milestones, which could hit that $50 million target when everything is factored in.
Why did the 7-year-old Enzymatics buy a 9-month-old startup? The goal here is evolution. Enzymatics is best known for making reagents, kits and assays. But ArcherDx develops next-generation sequencing-based kits and software for use in cancer treatment testing. Enzymatics said the combination will allow it to drastically boost its offerings of new gene sequencing tests for clinical researchers.
Jon DiVincenzo, Enzymatics' president and CEO, told FierceMedicalDevices via email that the company sees the acquisition positioning itself for a high-growth business.
"Next-generation sequencing and personalized medicine are one of the most rapidly growing areas of our industry, and we see Enzymatics catalyzing this revolution in genomic healthcare," he said. "There is high demand from clinical researchers interested in genomic technologies, which should fuel Enzymatics' organic growth, as we launch products from ArcherDx in the coming months, and also through further acquisitions in this space."
As part of the deal, ArcherDx co-founder and CEO Jason Myers is now Enzymatics' chief scientific officer. Xconomy reports that Archer's Boulder location will remain open with a focus on R&D. A staff of 15-20 people will remain there, added to Enzymatics' 100-employee staff.
Editor's note: This story has been updated with new quotes from Enzymatics CEO Jon DiVincenzo.