SoftBank Group Corp. plans to allocate $ 900 million to a hot gene sequencing company Pacific Biosciences of California as the Japanese technology conglomerate increases a new public capital investment effort.
PacBio, as it is known, produces next-generation DNA sequencing systems that are used to investigate diseases and develop treatments. The investment, in the form of convertible debt, is designed to help accelerate the company’s technology commercialization, the plan that SoftBank and PacBio will announce on Wednesday.
It adds to the approximately 6% stake in PacBio that SoftBank had already amassed and that will give the Japanese investor significant influence over the Menlo Park, California company.
PacBio has a market value of $ 7.4 billion after a dramatic jump in its shares in recent months, caused in part by a new joint venture with Invitae Corp., a genetic medicine company. PacBio, whose shares have multiplied by eleven since July, has also incorporated a new management, including a chief executive.
SoftBank, recently known for making large investments in private technology companies with a $ 100 billion fund, has been reorganizing, selling large stakes and buying shares. It has also increased its focus on listed companies. The investment in PacBio will be made through SoftBank’s newly established asset management group, SB Northstar, which invests in listed technology companies.