SomaLogic sent letter to stockholders on transaction with Standard BioTools

SomaLogic (SLGC) sent the following open letter to stockholders reiterating the Board’s belief that the proposed transaction between SomaLogic and Standard BioTools is in the best interest of all stockholders. “We firmly believe that the value-maximizing transaction with Standard BioTools is the best path forward for SomaLogic and all of its stockholders. You have an essential decision to make regarding the value of your investment… The Standard BioTools (LAB) Merger is Clearly the Best Path Forward . This merger delivers compelling value and potential for SomaLogic stockholders, positioning the Company for long-term success as a leading, well-capitalized and strongly managed provider of differentiated multi-omics tools. While we see tremendous future potential in the proteomics market, it is important to recognize that the path to realizing this potential as a standalone company involves significant execution risk and operational challenges. SomaLogic’s co-development partnership with Illumina (ILMN) alone will not guarantee the Company’s success. With industry consolidation more broadly, and Illumina focused on its own set of priorities, it is paramount that SomaLogic strengthen its position in the market – and this transaction is the best way to accomplish this… Following the merger, the combined company will benefit from: Dramatically increased scale and diversification; A robust portfolio of life science tools that power industry-leading throughput and data quality; A stronger financial profile and enhanced operating leverage, with over $500 million of cash and only $68 million of debt; $80 million in anticipated run-rate cost synergies achieved by 2026; and A combined Board and leadership team that brings together complementary teams with proven experience…. The transaction is the result of a thorough, independent and deliberative Board process that was focused at all times on identifying strategic options that could maximize value for all SomaLogic stockholders. During this process, the SomaLogic Board engaged with 16 parties to solicit potential interest in a transaction, but no other party expressed any actionable indication of interest and only one, other than Standard BioTools, entered into an NDA… The SomaLogic Board Is Independent and Acting in the Best Interests of ALL SomaLogic Stockholders. Madryn and its group’s criticisms of the transaction are without merit and reflect their own self-interest. Contrary to their claims: SomaLogic conducted thorough due diligence on Standard BioTools between June and October, with the assistance of outside legal, financial and strategic consultants… The Board and management changes announced in March 2023 were made with the specific goal of helping SomaLogic realize its tremendous potential… The bottom line is that the strategic rationale of the combination is strong, and the SomaLogic Board of Directors firmly believes this transaction represents the best path forward for SomaLogic and all its stockholders. Leading Independent Proxy Advisory Firm Institutional Shareholder Services Agrees that Stockholders Should Vote “FOR” the Merger”