NEW YORK – Invitae said on Monday that it will acquire Clear Genetics, a developer of software that supports the delivery of genetics services at scale, for approximately $50 million.
Under the definitive agreement, Invitae will purchase Clear Genetics for approximately $25 million in cash and $25 million in shares of its common stock. The purchase amount may be adjusted based on Clear Genetics' working capital upon closing and other factors, and a portion of the amount will be held back to satisfy indemnification obligations. Security holders of Clear Genetics will have the right for Invitae to register for resale the common stock it issues in the acquisition.
Pillsbury Winthrop Shaw Pittman represented Invitae in the deal and ZAG/Sullivan and LglBiz represented Clear Genetics.
The acquisition, slated to close in the coming days, will give Invitae access to Clear Genetics' chatbot Gia, or Genetic Information Assistant, which is already being used by customers ordering genetic testing through Invitae's direct channel. Gia was developed in collaboration with genetic counselors as an aid for consenting patients for genetic testing and research, gauging risk and suitability for testing, assessing insurance coverage, and pre- and post-test education. Patients can ask Gia questions and the chatbot uses natural language processing to respond.
Gia has already been deployed as part of the MyCode research project by Geisinger Health in Pennsylvania. Clear Genetics also provides software that automates patient triage and its software is being used at facilities around the country, such as the Huntsman Cancer Institute in Utah.