Invitae to acquire Jungla for approximately $50M
Invitae announced it has entered into a definitive agreement to acquire Jungla, a privately held company funded by Andreessen Horowitz that has developed a cloud-based platform that combines clinical knowledge with advances in functional genomics, biophysics, cellular engineering, machine learning, and distributed systems to help clinicians and patients understand the results of genetic and genomic tests. The combination is expected to further enhance Invitae's genetic variant interpretation and ability to deliver high-quality, more affordable genetic testing for use in mainstream medical care. Separately, Invitae announced the addition of RNA analysis to its commercial testing, beginning with patients undergoing cancer testing. Under the definitive agreement, Invitae will acquire Jungla for approximately $50M upon closing, $35M of which shall be in Invitae common stock and $15M of which shall be in cash, subject to certain adjustments. In addition, Invitae will pay up to $15M upon the achievement of certain milestones, mostly in stock with the balance in cash. The acquisition is expected to close in the coming days, subject to customary closing conditions. Invitae has already factored in the additional operating expense of this acquisition in prior statements about expected 2019 cash burn.