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A specialist life science-focused acquisition company backed by a well-known activist shareholder is on the verge of entering into a deal to merge with protein analysis firm SomaLogic Inc., according to people familiar with the matter.
CM Life Sciences II, a SPAC backed by Keith Meister’s Corvex Management LP and life sciences investor Casdin Capital LLC, could complete a merger with SomaLogic that values the company at around $ 1.25 billion as of Monday.
The transaction has additional backing from a group of leading investors, including SB Management, a subsidiary of SoftBank Group Corp., Cathie Wood’s ARK Investment Management LLC and gene sequencing company Illumina Inc., which will provide SomaLogic a private investment of $ 375 million in public stocks. as part of the deal, the people said.
With CM Life Sciences II’s nearly $ 300 million raised in an initial public offering in February, the deal under discussion would provide SomaLogic with around $ 650 million in cash, they said. .
This is a typical arrangement in the SPAC agreements, which have become fashionable on Wall Street. Vehicles, also known as blank check companies, raise funds during an IPO even if they don’t have a business. They then look for one to join in a deal that gives the target company a listing in what is considered a faster and cheaper route to the public markets than an IPO.
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