SoftBank Group Corp. plans to raise $ 900 million in red-hot gene sequencing company Pacific Biosciences of California, Inc. as the Japanese technology conglomerate increases a new attempt to invest in public shares.
PacBio, as it is known, manufactures 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 accelerate the commercialization of the company’s technology, and SoftBank and PacBio plan to announce it on Wednesday.
This comes in addition to a 6% stake in PacBio that SoftBank has already built up, and it will have a significant impact on Japanese investors in Menlo Park, California.
PacBio has a market value of $ 7.4 billion after a dramatic increase in its shares over the past few months, partly due to a new joint venture with Invitae Corp., a medical genetics company. PacBio, whose shares have risen elevenfold since July, also included new management, including a CEO.
SoftBank, recently known for making large investments in private technology companies from a $ 100 billion fund, revisited, sold large shares and repurchased shares. It has also increased its focus on publicly traded companies. The PacBio investment will be made through SoftBank’s newly established asset management arm, SB Northstar, which invests in listed technology companies.