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Recursion Pharmaceuticals Inc. (RXRX) on August 8, 2024, entered a merger agreement to acquire a smaller rival Exscientia Plc (EXAI) in an all-stock deal valued at about $193.06 million.
As per the agreement, Exscientia shareholders will receive 0.7729 shares of Recursion Class A common stock for each Exscientia ordinary share they own, at a price of about $4.92 per share, representing a premium of 9.33% from the stock’s last close.
Under the deal terms, Recursion shareholders will hold about 74% of the combined company, while Exscientia shareholders will own around 26%.
UK-based Exscientia uses AI to discover new drugs and is working on treatments for immune system disorders and cancer.
Recursion is a phase 2 clinical-stage company, founded in 2013, with a pipeline of treatments targeting rare diseases and certain types of cancer. The company went public in 2021 and has established partnerships with major pharmaceutical firms like Roche AG and Bayer.
Earlier this year, Recursion launched BioHive-2, a supercomputer powered by Nvidia (NVDA), to speed up finding new drugs. Nvidia is also one of Recursion’s investors.
Buying Exscientia would improve Recursion’s drug development and give it new partnerships with big drug companies like Sanofi and Merck KGaA.
The deal, which is expected to close by early 2025, highlights how big drug companies are turning to AI more and more to speed up drug development, quickly find patients for trials, and reduce the number of people needed to test new medicines.
Exscientia’s current Price/Sales (TTM) ratio is 22.71, above the sector median of 3.57.
The deal would give the combined company around $850 million in cash to support its operations for the next three years.
For a detailed overview of this M&A transaction, you can visit the Deal Metrics page here:
Deal Metrics for the acquisition of Exscientia Plc (EXAI) by Recursion Pharmaceuticals Inc. (RXRX)
The Deal Metrics page for each merger or acquisition provides:
– A spread history chart of the merger from announcement to completion or failure.
– Progress of the merger through the expiration of the HSR period, regulatory approvals, shareholder votes, etc.
– News and SEC filings.
– A history of deal updates.
– And much more.
Disclaimer: Please conduct your own research before buying or selling any securities mentioned in this article. The completeness or accuracy of the content or data provided in this article is not guaranteed.
Editor’s Note: Baranjot Kaur contributed to this article