SomaLogic Issues Letter To Stockholders Reiterating Recommendation For Value Maximizing Merger With Standard BioTools
Portfolio Pulse from Benzinga Newsdesk
SomaLogic, Inc. (SLGC) has issued a letter to its stockholders urging them to vote in favor of a merger with Standard BioTools (LAB), scheduled for a vote at a special meeting on January 4, 2024. The merger is expected to build scale, accelerate profitability, and unlock significant value for SomaLogic stockholders, with a projected $300 million in combined revenue by 2026 and $80 million in cost synergies. The SomaLogic Board believes the merger is the best path forward, countering concerns raised by a small group of stockholders. The combined company will have over $500 million in cash and only $68 million in debt, with SomaLogic stockholders owning 57% post-merger. The transaction is set to close in the first quarter of 2024, pending stockholder approval and other conditions.
December 21, 2023 | 1:07 pm
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POSITIVE IMPACT
Standard BioTools is set to merge with SomaLogic, which is anticipated to bring about $300 million in combined revenue by 2026 and $80 million in cost synergies. SomaLogic stockholders will own 57% of the combined entity.
The merger with SomaLogic is expected to benefit Standard BioTools by increasing its scale and diversification. The financial projections and anticipated synergies suggest a positive short-term impact on LAB's stock price, contingent on stockholder approval and successful merger completion.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 80
POSITIVE IMPACT
SomaLogic is advocating for a merger with Standard BioTools, which is expected to increase scale, accelerate the path to profitability, and create significant value for stockholders. The company projects $300 million in revenue by 2026 and $80 million in cost synergies.
The merger is portrayed as a strategic move to enhance SomaLogic's market position and financial strength. The positive outlook presented by the Board, including revenue projections and cost synergies, suggests a likely favorable short-term impact on SLGC's stock price, assuming stockholder approval.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100