Genedx (NASDAQ: WGS) has announced its plans to acquire Fabric Genomics, a pioneer in AI-powered genomic interpretation. The acquisition will further Genedx's leadership in decentralized testing with centralized intelligence, enabling the company to deliver global access to genomic information and accelerate the neonatal intensive care unit (NICU) market, enable newborn screening, and open global market opportunities with on-site sequencing and decentralized interpretation.
The transaction, which has been approved unanimously by Genedx's board of directors, is expected to close in the second quarter of 2025, subject to closing conditions. Under the terms of the agreement, Genedx will pay up to an aggregate of $33 million in cash upon closing, with total consideration potentially up to an aggregate of $51 million upon achievement of certain milestones.
The acquisition will expand Genedx’s addressable market with multiple scalable revenue streams, including NICU genomic testing and genomic newborn screening (GNBS). Studies show that rapid whole genome sequencing reduces diagnostic time and cost while improving outcomes, and with Fabric Genomics’ platform integrated into clinical workflows across major institutions, Genedx can now rapidly deploy interpretation infrastructure to hospitals already sequencing in-house, capturing untapped demand and opening up access.
Furthermore, as global health systems shift toward data sovereignty and local sequencing, Fabric Genomics’ cloud-native platform enables Genedx to deliver centralized AI interpretation while complying with local regulations. This architecture supports flexible go-to-market strategies and expands Genedx’s ability to serve regions such as EMEA, APAC, Canada, LATAM, and emerging markets with tailored commercial models.
With more than 750,000 exomes/genomes sequenced, Genedx’s dataset represents a significant barrier to entry and value engine for AI development, clinical decision support, and data monetization. Fabric Genomics’ software transforms static data into a dynamic, recurring revenue-generating platform, driving growth through software margins and high-leverage interpretation services across geographies and clinical use cases.
At closing, Fabric will continue to operate independently, maintaining its momentum and fostering organic growth. However, Genedx will provide commercial support both in the U.S. and internationally, accelerating the expansion of Fabric Genomics' impact.
Today the company's shares have moved -4.7% to a price of $97.4. For the full picture, make sure to review GeneDx's 8-K report.
