US biotech company Ginkgo Bioworks to merge with Soaring Eagle in $15bn deal
Ginkgo Bioworks, a Boston-based biotech company, has agreed to merge with Soaring Eagle Acquisition Corp., a publicly traded blank check company, in a deal that values the former at $15 billion.
The deal will enable Ginkgo Bioworks to become a publicly listed company.
Founded in 2008, the company is engaged in using genetic engineering for producing custom-crafted organisms that can be used in food and agriculture, industrial chemicals, pharmaceuticals, and other sectors.
The company had developed a platform for making cell programming easier for its customers and partners. Its platform makes use of advanced robotic automation, the company’s software, and data analytics for continuously boosting the technology and also the knowledge and re-usable biological assets needed for biological engineering.
Jason Kelly – co-founder and CEO of Ginkgo Bioworks said: “The magic of biology is that cells run on digital code similar to a computer, except that instead of 0s and 1s it’s As, Ts, Cs, and Gs.
“Ginkgo’s platform makes it easier to program this code, and we are making this platform available to organizations working to solve our most pressing problems. From mRNA vaccines reaching people’s arms to combating climate change, the opportunity to work with programmed cells has never been more apparent.”
The deal is likely to give gross cash proceeds of up to $2.5 billion for the US biotech company. This includes Soaring Eagle Acquisition’s cash in trust of $1.725 billion, subject to any redemptions by its public shareholders, and $775 million in proceeds from a PIPE transaction.
The merger deal is co-sponsored by Eagle Equity Partners alongside Bellco Capital, which is led by Dr. Arie Belldegrun.
Both the firms are also taking part in the PIPE investment, which is led by Baillie Gifford, funds and accounts managed by Counterpoint Global (Morgan Stanley Investment Management), and Putnam Investments, along with other investors.
Harry E. Sloan – CEO of Soaring Eagle Acquisition said: “Eagle Equity Partners continues to focus on companies that are in a category of one.
“Ginkgo is not only a leader in this field, but its founders launched the modern practice of synthetic biology. There has never been a more critical time to employ Ginkgo’s technological achievements and efficiencies toward solving so many real-world problems—environment, food, and health to name a few.”