Stamford-based Sema4 is set to go public

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STAMFORD – Healthcare information provider Sema4 intends to complete its transformation into a publicly traded company by the end of next month, a plan to boost the growth of one of the companies fastest growing in Connecticut.

Sema4, headquartered in Stamford, goes public through a process that offers an alternative to an initial public offering. He struck a deal with “special purpose acquisition company” CM Life Sciences – a deal that placed $ 2 billion in “pre-merger enterprise value” on the company.

Emmett Higgins, vice president of laboratory operations at Sema4, right, leads Sen. Chris Murphy, D-Connecticut and other elected officials on a tour of Sema4’s lab at 62 Southfield Ave., in Stamford, Connecticut.

Matthew Brown / Hearst Connecticut Media

The partnership with CM Life Sciences is expected to generate proceeds of up to approximately $ 793 million once the transaction is completed. Up to $ 343 million of this amount would be paid to Sema4 shareholders, with the remainder supporting Sema4’s operations.

After Sema4’s IPO, its shares will be traded on the Nasdaq Global Market.

“We remain on track to complete the transaction by the end of July, following the completion of the review process (Securities and Exchange Commission) and the vote of CM Life Sciences shareholders,” a spokesperson said on Tuesday. word of Sema4.

To facilitate the IPO of Sema4, CM Life Sciences proceeded in September to an IPO of 385 million dollars.

A major sign of confidence in the company’s prospects, institutional investors are contributing up to $ 350 million in “private investments in public shares”.

“It’s kind of a reverse IPO because you set the price up front, do the ‘road show’ from the start getting all these big public investors to sign, then you make this deal. “Merge” and you prepare to go public, ”Sema4 founder and CEO Eric Schadt said in February when the company’s plan to go public was announced. “It helps capture the market value today, helps set the price (of the stock) and gives you security.”

Sema4 Founder and CEO Eric Schadt of Sema4, center, chats with Senator Chris Murphy, center;  State Representative David Michel, D-Stamford;  and other elected officials during a tour of Sema4's lab at 62 Southfield Ave., Stamford, Connecticut, September 18, 2020.

Sema4 Founder and CEO Eric Schadt of Sema4, center, chats with Senator Chris Murphy, center; State Representative David Michel, D-Stamford; and other elected officials during a tour of Sema4’s lab at 62 Southfield Ave., Stamford, Connecticut, September 18, 2020.

Matthew Brown / Hearst Connecticut Media

Sema4 had already attracted significant investments. Last year, the company received an injection of $ 121 million from a group of funders that included state-chartered investment agency Connecticut Innovations and venture capital firm Oak HC / FT. based in Greenwich.

Since splitting from Mount Sinai Health System into its own business in 2017, Sema4 has grown significantly in Connecticut.

Last December, he announced the opening of an approximately 70,000 square foot laboratory in the Waterside section of Stamford. The lab has the capacity to process thousands of genomic tests per day, which is vital to Sema4’s efforts to provide information on thousands of genetically identifiable diseases to patients across the country.

It replaced the company’s old lab on the Mount Sinai campus in Manhattan and complements another lab in Branford.

The company’s main offices are located at 333 Ludlow St., south of Stamford.

In total, Sema4 employs around 1,000 people.

To support Sema4’s expansion, the State Department of Economic and Community Development has granted the company a total of $ 15.5 million in loans.

Through all of its operations, Sema4 has accumulated more than 10 million patient records.

Its name refers to the semaphore – a system used to send signals. The company said it aims to “discern signal from noise across billions of data points” to better understand human health.

[email protected]; twitter: @paulschott



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