Illumina Buying Solexa

The stock swap is valued at $600 million.
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Illumina

(ILMN) - Get Report

agreed to buy

Solexa

(SLXA)

for $14 a share, or $600 million in stock, in a merger of genetic science players.

The deal gives holders of Hayward, Calif.-based Solexa a 45% premium to Friday's closing price.

San Diego-based Illumina will also buy $50 million worth of new Solexa shares.

The companies said Illumina and Solexa will create the only company with genome-scale technology for genotyping, gene expression and sequencing, the three cornerstones of modern genetic analysis.

This exchange ratio will be determined by dividing $14 by the volume weighted average trading price of Illumina common stock as reported by

Nasdaq

during 10 randomly selected days during the 20-day trading period ending five trading days prior to closing.

However, if the Illumina average price is equal to or greater than $47.30, then the exchange ratio will be fixed at 0.296; if the Illumina average price is equal to or less than $40.70, then the exchange ratio will be fixed at 0.344.