DNA - Biotech Zymergen surges 21% on $300M buyout deal with Ginkgo

• Cell programming company Ginkgo Bioworks ( NYSE: DNA ) has agreed to acquire Zymergen ( ZY ) in an all-stock transaction valuing the Emeryville, California-based biotech at nearly $300M market capitalization, the companies said on Monday.
• After a brief trading halt, Zymergen ( ZY ) shares climbed ~21% in the pre-market in reaction to the news, while Ginkgo ( DNA ) added ~6% .
• Per the terms, Zymergen ( ZY ) shareholders are entitled to 0.9179 Ginkgo ( DNA ) shares for each Zymergen ( ZY ) share they hold, leading them to claim 5.25% pro forma ownership in the company following the deal.
• The agreement, representing Ginkgo's ( DNA ) largest acquisition to date, is expected to further expand the company’s horizontal platform, which is designed to focus on customers across different industries rather than its own products.
• “We have always had incredible respect for the Zymergen team and the strength of the technologies that they have built for cell programming," noted Jason Kelly, CEO and co-founder of Ginkgo ( DNA ).
• The deal is expected to close in 1Q 2023, subject to approval by Zymergen's ( ZY ) stockholders and other closing conditions.

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