Exact Sciences Corp., the Madison-based biotechnology and cancer diagnostics company, has finalized its $2.15 billion acquisition of cancer detection company Thrive Earlier Detection Corp.
Exact Sciences (Nasdaq: EXAS) announced the deal for the Cambridge, Massachusetts-based firm in October 2020 with plans to complete the deal in the first quarter of 2021.
When the company announced the transaction, it stated Thrive would receive total consideration of up to $2.15 billion, of which $1.7 billion would be payable at closing, comprising 65% in Exact Sciences common stock and 35% in cash, subject to certain adjustments, the company stated. An additional $450 million would be payable based on reaching certain milestones.
In 2020, Thrive raised $257 million from private investors, including Exact Sciences. Exact Sciences initially invested in Thrive in early 2019, when the company launched with $110 million in a Series A funding round. Thrive's CancerSEEK was designed to detect pieces of tumor DNA and proteins associated with different types of cancers.
"Bringing Thrive into the Exact Sciences family marks a giant leap toward blood-based, multi-cancer screening becoming a reality and eventually the standard of care," said Kevin Conroy, chairman and CEO of Exact Sciences, in a statement. "Today is an important one in Exact's history as we continue to lead cancer diagnostics and transform the future for millions of patients through earlier detection and treatment guidance."
Thrive was one of four acquisitions made by Exact Sciences in 2020. In early 2020, the company closed deals for Phoenix-area med tech companies Paradigm Diagnostics Inc. and Viomics, and in October 2020, announced it had acquired Base Genomics of Cambridge, England, for $410 million.
Exact Sciences, which makes the Cologuard colon cancer take-home test, had fiscal 2019 revenue of $876.3 million. Between 2016 and 2020, the company saw revenue growth of 782% according to global consulting firm Deloitte.
The company's stock was down just under three points at $126.25 in mid-morning trading Tuesday.
