Stamford health care information firm Sema4 announces $793M deal


STAMFORD — Sema4, the health care information company that recently opened a large laboratory in the city, announced Wednesday an agreement to combine with “special purpose acquisition company” CM Life Sciences, a deal intended to significantly boost the Stamford-based firm’s growth.

The combined company is expected to receive proceeds of up to approximately $793 million when the transaction is completed. Of that amount, $343 million would be paid to Sema4 stockholders and the remainder would support Sema4’s operations. Valuing Sema4 at approximately $2 billion, the agreement is expected to close during the second quarter of this year.

“This transaction is a significant milestone for Sema4,” Eric Schadt, Sema4’s founder and CEO, said in a statement. “The additional resources will allow us to greatly accelerate our business plans organically and inorganically, developing and bringing in more cutting-edge precision model solutions across multiple disease areas.”

In addition to approximately $443 million of cash held in CM Life Sciences’ trust account, a group of institutional investors plans to participate in the transaction through $350 million of “private investment in public equity,” a means of buying shares of publicly traded stock at pricing below the shares’ current market value.

Those investors include Casdin Capital, Corvex Management, Greenwich-based Viking Global Investors, Fidelity Management & Research Company LLC, Counterpoint Global (Morgan Stanley), Perceptive Advisors, SB Management, a subsidiary of SoftBank Group Corp, funds and accounts advised by T. Rowe Price Associates Inc. Existing investors including funds and accounts managed by Blackrock and Deerfield Management.

“The disruptive promise in combining these genomic and clinical data sets, at the patient level, is profound but takes a team of experts, the right business model, and lots of growth capital,” Eli Casdin, founder and chief investment officer of Casdin Capital, said in a statement. “We therefore could not be more excited to lend our partnership and fill the balance sheet for the foremost leader in the field, Eric Schadt and the expert team he’s assembled at Sema4. With an early start, unique business strategy and more than 150 leading data scientists, this is the premier company in one of the biggest, winner-take-most markets in life sciences.”

After the deal closes, CM Life Sciences would be renamed and its common stock would be listed on the Nasdaq Global Market under a name and a ticker symbol to be announced at a later date.

Since its 2017 founding, Sema4 has grown quickly in Connecticut.

In December, it announced the opening of its approximately 70,000-square-foot lab in Stamford’s Waterside section. The new facility has the capacity to process thousands of genomic tests per day — a boon for the company in its efforts to provide information related to thousands of genetically identifiable diseases to patients across the country.

Sema4 is headquartered 1.5 miles east, at 333 Ludlow St. It also has a laboratory in Branford.


Show More

Related Articles

Back to top button