The deal will enable validated and new BioNTech-trained AI- and ML-based models to be integrated into the company’s discovery platforms and connected to an automated lab infrastructure through InstaDeep’s DeepChain platform
AI firm InstaDeep to be acquired by BioNTech. (Credit: Epizentrum/Wikipedia.org)
German pharma company BioNTech has agreed to acquire UK-based artificial intelligence (AI) and machine learning (ML) firm InstaDeep in a cash and stock deal worth up to £562m.
As per the terms of the agreement, BioNTech will pay a total upfront consideration of around £362m in cash and stock for the remaining shares in InstaDeep that it already did not own.
Besides, InstaDeep’s shareholders will receive additional performance-based future milestone payments of up to around £200m.
The deal follows the German pharma company’s initial equity investment as part of InstaDeep’s Series B funding round around this time last year.
Founded in 2014, InstaDeep offers decision-making AI products and services for companies.
InstaDeep CEO and co-founder Karim Beguir said: “AI is progressing exponentially and our mission at InstaDeep has always been to make sure it benefits everyone.
“We are very excited to join forces and become one team with BioNTech, with whom we share the same culture of deep tech innovation and focus on positive human impact.
“Together, we envision building a world leader that combines biopharmaceutical research and AI with the aim to design next-generation immunotherapies that enhance medical care – thus, helping fight cancer and other diseases.”
Through the acquisition, BioNTech is expected to advance its strategy to develop capabilities in AI-driven drug discovery and the development of next-generation immunotherapies and vaccines to treat diseases with significant unmet medical need.
Besides, the deal will enable validated and new BioNTech-trained AI- and ML-based models to be integrated into the company’s discovery platforms and connected to an automated lab infrastructure through InstaDeep’s DeepChain platform.
This is anticipated to allow high-throughput design and testing of new drug candidates at scale.
BioNTech CEO and co-founder of Ugur Sahin said: “Since the inception of BioNTech, we have focused on leveraging computational solutions to create personalised immunotherapies that can reach a wide patient population.
“The acquisition of InstaDeep allows us to incorporate the rapidly evolving AI capabilities of the digital world into our technologies, research, drug discovery, manufacturing, and deployment processes. Our aim is to make BioNTech a technology company where AI is seamlessly integrated into all aspects of our work.”
The companies have been collaborating since 2019. In November 2020, the duo entered into a multi-year strategic partnership and announced a joint AI innovation lab.
Following the closing of the deal, InstaDeep is anticipated to operate as a UK-based global subsidiary of BioNTech.
The deal, which is subject to customary conditions and regulatory approvals, is expected to close in the first half of 2023.