agreed to buy
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
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.