SAN DIEGO—Genetic analysis company Illumina Inc. said Tuesday it will buy privately held Avantome Inc. for $25 million upfront in order to boost its genetic sequencing technologies.
Illumina said it will make a $25 million cash payment and contingent payments up to $35 million for the company. Avantome's principal founders, Mostafa Ronaghi and Helmy Eltoukhy, will join Illumina's management.
Ronaghi will become senior vice president and chief technical officer and Eltoukhy will become director of Avantome sequencing development.
The deal is expected to close in the next few weeks.
Shares jumped $3.40, or 4 percent, to $87.50 in after-hours trading. The stock rose 6 cents to close at $84.10 during the regular trading session.
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