SoftBank Group Corp. plans to put $ 900 million into the red-hot gene sequencing company Pacific Biosciences of California Inc. as the Japanese technology conglomerate steps up a new investment in public equity.
PacBio, as it is known, produces next-generation DNA sequence systems that are used to research diseases and develop treatments. The investment, in the form of convertible debt, is intended to accelerate commercialization of the company’s technology, SoftBank and PacBio announced Wednesday.
It is in addition to an approximately 6% stake in PacBio that SoftBank had already accumulated and will give the Japanese investor significant power over the Menlo Park, California company.
PacBio has a market value of $ 7.4 billion after a dramatic rise in its shares in recent months, fueled in part by a new joint venture with Invitae Corp., a medical-genetic company. PacBio, whose stock has risen 11 times since July, has also attracted new management, including a CEO.
Best known in recent times for making large investments in private tech companies from a $ 100 billion fund, SoftBank has been redesigning, selling large holdings and buying back shares. It has also paid more attention to listed companies. The PacBio investment will be made through SoftBank’s recently created asset management arm, SB Northstar, which invests in publicly traded technology companies.