Labcorp, a leading laboratory service provider, has made a significant move in the healthcare industry by announcing its acquisition of assets from Invitae Corp, a genetic test maker that filed for bankruptcy earlier this year. The acquisition comes after Invitae sought voluntary Chapter 11 protection in February, signaling its intent to undergo a sale process.

According to statements released by both companies, Labcorp will acquire all of Invitae’s assets as part of the bankruptcy proceedings. The acquisition, valued at $239 million in cash consideration along with other non-cash considerations, underscores Labcorp’s strategic vision to expand its capabilities and offerings in genetic testing and diagnostics.

Invitae’s decision to file for bankruptcy protection was driven by financial challenges, with the company’s estimated assets ranging between $500 million to $1 billion and liabilities falling within the $1 billion to $10 billion range, as disclosed in its bankruptcy filing. Despite facing financial difficulties, Invitae remained an attractive asset due to its expertise in genetic testing and its established presence in the healthcare market.

Labcorp’s acquisition of Invitae’s assets on a going concern basis highlights the confidence in the potential of Invitae’s technology and intellectual property. By integrating Invitae’s assets into its portfolio, Labcorp aims to strengthen its position as a leading provider of diagnostic services and genetic testing solutions, catering to the growing demand for personalized healthcare services.

The acquisition also reflects Labcorp’s commitment to innovation and diversification in the rapidly evolving healthcare landscape. With advancements in genetic testing technology playing a pivotal role in disease detection, prevention, and treatment, Labcorp’s acquisition of Invitae’s assets positions the company to capitalize on emerging opportunities in the genetic testing market.

The completion of the acquisition is subject to customary closing conditions and regulatory approvals. Once finalized, Labcorp will assume control of Invitae’s assets, allowing for a seamless transition of operations and ensuring continuity of services for customers and patients. One thing to note is that Invitae is backed by Softbank which could be one of the reasons why Labcorp is looking to acquire this bankrupt company because of the fact that it has been vetted by one of the best investment firms in the world and there must be potential in its assets.