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SomaLogic (NASDAQ:SLGC) holder Madryn Asset Management plans to vote against the clinical diagnostics group’s deal with Standard BioTools (NASDAQ:LAB) and wants other investors to do the same.
Madryn claims the $1 billion merger undervalued SomaLogic (SLGC) and resulted from a flawed process, according to a Bloomberg report on Tuesday, which cited a letter the investor wrote to other SLGC investors. SomaLogic should remain independent.
Madryn had a 4% stake in SomaLogic as of the end of September.
SomaLogic (SLGC) and Standard BioTools (LAB) announced in October that the companies would combine in an all-stock merger. The combined company will have a pro forma equity value of over $1 billion. After the closing of the transaction, LAB shareholders will hold ~43% of the combined company, and SLGC will own the rest on a fully diluted basis.
“The deal value, at the announcement and since is plainly insufficient in light of recent SomaLogic trading prices and the company’s historical valuation relative to peers,” Madryn’s Managing Partner Avinash Amin wrote in the letter, according to Bloomberg.
SomaLogic (SLGC) told Bloomberg that the company had decided to go ahead with the deal after a “comprehensive review of strategic options.”
