Tokyo-based Konica Minolta Inc. and Ambry Genetics Corporation, of Aliso Viejo, Calif., have signed a definitive agreement for a subsidiary of Konica Minolta to acquire Ambry. The transaction is partially funded by Innovation Network Corporation of Japan (INCJ). According to the companies, $800 million will be paid upon closure, and there will be an additional payment of up to $200 million based on certain financial metrics over the next 2 years, valuing the acquisition up to a total of $1 billion.

Founded in 1999, Ambry has a comprehensive suite of genetic testing systems for inherited and non-inherited diseases as well as for numerous clinical specialties, including oncology, cardiology, pulmonology, neurology, and general genetics. It is recognized as a leader in diagnostic solutions for hereditary conditions in the United States.

Konica Minolta views the addition of Ambry as the first stepping-stone to create a new medical platform aimed at fulfilling the potential of precision medicine—an emerging approach to healthcare where genetic or molecular analysis is used to match patients with the most appropriate treatment for their specific disease. Precision medicine aims to improve a patients’ quality of life and save the healthcare system money by eliminating unnecessary and ineffective treatments.

Konica Minolta plans to bring Ambry’s capabilities first to Japan, and then to Europe.

“The future of medicine is patient-focused,” says Shoei Yamana, president and CEO of Konica Minolta.“Together with Ambry, we will have the most comprehensive set of diagnostic technologies for mapping an individual’s genetic and biochemical makeup, as well as the capabilities to translate that knowledge into information the medical community can use to discover, prevent, and cost-effectively treat diseases.”

The acquisition of Ambry and the advancement of precision medicine marks a strategic and important shift for Konica Minolta’s healthcare business. Leveraging its long history of innovation in materials science, nanofabrication, optics, and imaging, Konica Minolta has developed a comprehensive range of technologies and services in the healthcare field spanning digital X-ray diagnostic imaging systems, diagnostic ultrasound systems, and ICT service platforms for medical institutions.

Ambry’s genetic testing capabilities complement Konica Minolta’s advanced imaging technology to create a range of healthcare diagnostics for use by pharmaceutical companies, healthcare providers, payors, and consumers.

“We’re excited by this opportunity to combine both our companies’ technologies to unlock new opportunities for precision medicine,” says Charles Dunlop, president and chairman of Ambry Genetics. “As a part of Konica Minolta, we will have the resources, technology, and scale to advance biomedical research and enable the matching of more patients in more countries with specialized medicines that target the underlying cause of their illness.”