Swiss drugmaker Roche said Friday it has agreed to buy LumiraDx’s LumiraDx diagnostics platform for about $295 million.
LumiraDx shares rose 20% to 76 cents in after-hours trading.
The transaction is expected to be completed by mid-2024, after which the acquired segment will become part of Roche’s diagnostics unit, the drugmaker said.
Under the terms of the agreement, Roche will pay a purchase price of $295 million upon closing. It will also pay up to $55 million in compensation to fund the platform until the transaction closes. LumiraDx said the proceeds from the sale would not be distributed to its shareholders, but would be used to pay down some of its debt.
The acquired Point of Care technology unit offers a range of immunoassays and clinical chemistry tests on a single platform. LumiraDx also on Friday appointed Andrew Johnson, Lisa Rickelton and Lindsay Hallam of FTI Consulting as joint administrators of two of its subsidiaries, LumiraDx Group Limited and LumiraDx International Limited.
The appointment and sale of Roche represent the culmination of the company’s previously announced strategic review process. (Reporting by Sriparna Roy in Bengaluru; Editing by Pooja Desai)