Berkeley Lights to acquire biotechnology company IsoPlexis to form PhenomeX

Berkeley Lights, a US-based life sciences tools company, will acquire IsoPlexis, a Nasdaq-listed biotechnology company, in an all-stock deal worth $57.8 million.

IsoPlexis empowers labs to leverage the cells and proteome changing the course of human health.

The transaction is anticipated to form a major functional cell biology company called PhenomeX to offer live cell biology research tools for deep insights into cellular function and new perspectives on phenomes.

PhenomeX is expected to integrate complementary technologies, customer bases, and commercial channels to further position Berkeley Lights in the single-cell biology space.

The new entity is expected to generate annualized cost synergies of around $70 million and operating cash flow of $150 million by 2024.

Siddhartha Kadia — Berkeley Lights CEO said: “The combination of Berkeley Lights and IsoPlexis represents an important milestone and fuels our transformation into a growing, profitable, and sustainable life sciences company.

“This transaction accelerates our progress across every core pillar of our strategic plan and creates a path to achieving positive operating cash flow earlier than we expected to as a standalone company.

“We look forward to joining forces with the IsoPlexis team as we embark on this next chapter and create value for our shareholders, employees, and customers.”

Post-closing, Berkeley Lights shareholders will own around 75.2% of PhenomeX while IsoPlexis shareholders will hold about 24.8% of the combined entity.

Sean Mackay — IsoPlexis co-founder and CEO said: “This transaction brings together two companies whose innovative solutions will help establish a technology leader in functional cell biology.

“The combined company will have a world-class team with complementary cultures and competencies to drive outcomes for customers and shareholders.”

Likely to close in the first quarter of 2023, the deal is subject to both Berkeley Lights and IsoPlexis shareholders’ approval and other customary closing conditions.