January 7, 2013 / 5:20 AM / 7 years ago

Illumina to buy Verinata Health for $350 mln plus milestone payments

Jan 7 (Reuters) - U.S. genetic sequencing company Illumina Inc said it has agreed to buy Verinata Health Inc for $350 million plus up to $100 million in milestone payments through 2015 to expand its footprint in prenatal testing options.

Verinata Health is a provider of non-invasive tests for the early identification of fetal chromosomal abnormalities.

The deal is expected to dilute Illumina’s non-GAAP earnings per share by 20 cents in 2013 before turning accretive beginning in 2014 and beyond.

Illumina said the transaction will be financed primarily with cash on hand.

The Verinata deal follows after smaller peer Complete Genomics Inc rejected Illumina’s takeover bid of about $114 million in November.

Bank of America Merrill Lynch acted as financial advisor to Illumina and Covington & Burling LLP acted as legal counsel.

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