Fulgent Genetics has inked a definitive agreement so as to buy specific assets of Bako Diagnostics and to also acquire StrataDx, both US-based laboratories, for a combined purchase price of almost $55.5 mn making its lab services business to thrive further.
The closure of the acquisitions is expected to take place in the first half of 2026, contingent on customary closing conditions as well as regulatory clearances.
Notably, the total purchase price is going to be paid from cash on hand of Fulgent.
The addition of Bako as well as StrataDx is expected to bolster the lab services business of Fulgent with the inclusion of certain new products as well as services, broadening its national client base and also sales team, and growing its team of pathologists.
Interestingly, Bako provides a comprehensive testing menu that includes molecular genetic testing, anatomic pathology, and peripheral neuropathy immunohistochemical testing.
StrataDx goes on to offer dermatopathology testing services and is also Clinical Laboratory Improvement Amendments – CLIA-certified as well as licensed by the State of Massachusetts.
It is worth noting that Fulgent is said to have invested in AI and digital pathology, such as the launch of the Eziopath image management system.
The adoption of such technologies is anticipated to elevate the capacity, the turnaround times, and also the quality of services at both Bako and StrataDx.
The acquisition is also going to add to the test portfolio of Fulgent, polymerase chain reaction – PCR tests of Bako that are designed for cost-effectiveness as well as fast turnaround.
Through combining the testing offerings and national sales team of Bako and StrataDx, Fulgent looks forward to providing a much wider range of diagnostic services throughout the US.
The addition of the salesforce of Bako will almost double the size of the pathology sales team of Fulgent.
Apparently, the client network of Bako is going to give Fulgent access to more patients at important points within the healthcare system. It is well to be noted that Piper Sandler & Co. went on to serve as the exclusive financial advisor of Fulgent, whereas Mintz Levin, Cohn, Ferris, and Glovsky, as well as Popeo, offered legal counsel.
In addition to this, EV Health Partners was the exclusive financial advisor to the Consonance Capital Partners, Bako as well as StrataDx, and Latham & Watkins went on to serve as the legal counsel.
The chairman and CEO of Fulgent, Ming Hsieh, said that with the addition of Bako and StrataDx, they will be able to widen their capabilities in the pathology testing market and also further make utmost use of their investments in AI in order to improve efficiency as well as quality, which is sure to drive continued momentum in their laboratory services business.