mynth
08/2024

EXSCIENTIA acquired by RECURSION PHARMACEUTICALS

UNITED KINGDOM Life Sciences / Pharma & Biotech / R&D Biotech REV 10M - 30M GBP

Context

Recursion Pharmaceuticals has entered into a definitive agreement to acquire Exscientia in an all-stock transaction. This strategic move aims to bring together two artificial intelligence-driven drug discovery specialists, creating a comprehensive platform that spans the entire process, from biology to computational chemistry. The deal is structured as a stock swap, where Recursion shareholders will hold the majority of the combined entity's capital, while Exscientia shareholders will receive a minority stake in the new company. The strategic rationale behind this merger is to combine complementary technological approaches, with Recursion focusing on large-scale biological analysis and Exscientia bringing advanced AI-driven molecular design expertise. The combined company will retain the Recursion name and benefit from a strengthened financial foundation, including significant cash reserves to support its operations for several years. The transaction is also expected to generate substantial synergies by leveraging shared technological platforms, data, and research capabilities, with the ambition of accelerating the discovery of new drug candidates and enhancing the overall efficiency of pharmaceutical development programs.

EXSCIENTIA, which reported an EBITDA margin of LOGIN in 2023, is valued in this transaction at an EV/EBITDA multiple of LOGIN, a level to compare with the average currently observed in the Healthcare & Pharma sector (14.8x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.

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Target

Exscientia is a UK-based biotechnology company that specializes in AI-driven drug discovery. The company develops technological platforms that leverage algorithmic approaches to identify, design, and optimize novel therapeutic molecules, combining machine learning, predictive modeling, and medicinal chemistry expertise. By doing so, Exscientia aims to accelerate the initial stages of pharmaceutical research, which are traditionally time-consuming and costly, by enhancing the selection of promising drug candidates and reducing failure rates in development. The company focuses on key therapeutic areas such as oncology and immunology, collaborating with international pharmaceutical partners. It also has a pipeline of clinical-stage drug candidates emerging from its proprietary molecular design platform. As a pioneer in applying AI to drug discovery, Exscientia combines advanced computational capabilities with scientific expertise to optimize the identification of new therapeutic targets, streamlining the drug development process and improving patient outcomes.

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Historical Financials (GBP)

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REFERENCES

Revenue range: 10M - 30M GBP

EBITDA range: 0M - 5M GBP

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Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).

Acquirer: recursion pharmaceuticals