SoftBank Group Corp. plans to invest $ 900 million in Pacific Biosciences of California Inc., which handles gene sequencing, as the Japanese technology conglomerate grows a new public capital investment effort.
PacBio, as it is known, produces next-generation DNA tracking systems used for disease research and treatment development. The investment, in the form of convertible debt, is designed to help accelerate the commercialization of the company’s technology, SoftBank and PacBio intend to announce on Wednesday.
It adds to the approximately 6% stake in PacBio that SoftBank has already accumulated and will give the Japanese investor significant influence over Menlo Park, California.
PacBio has a market value of $ 7.4 billion, after a dramatic jump in its shares in recent months, which was partially triggered by a new joint venture with Invitae Corp., a medical genetics company. PacBio, whose shares are 11 times larger since July, has also brought in new management, including an executive director.
SoftBank, best known lately for large investments in private technology companies with a fund of 100 billion dollars, has reorganized, sold large stakes and bought shares. He also focused on listed companies. The PacBio investment will be made through SoftBank’s newly established asset management arm, SB Northstar, which invests in listed technology companies.