BioNTech and InstaDeep announced that they have entered into an agreement under which BioNTech will acquire InstaDeep in a $680 million deal, a global technology company in the field of artificial intelligence (AI) and machine learning (ML).

The transaction includes a total upfront consideration of approximately $438.9 million in cash and BioNTech shares to acquire 100% of the remaining InstaDeep shares. In addition, InstaDeep shareholders will be eligible to receive additional performance-based future milestone payments of up to approximately $242 million. The transaction follows BioNTech’s initial equity investment as part of InstaDeep’s Series B financing round last year.

Through the acquisition, BioNTech will grow its network of global research collaborators in the field and expand its footprint in key talent hubs across the United States, Europe, Africa, and the Middle East.

The acquisition comes in line with BioNTech’s strategy to build “world-leading capabilities in AI-driven drug discovery and development of next-generation immunotherapies and vaccines to address diseases with high unmet medical needs,” according to their statement.

“Since our inception, we have focused on leveraging computational solutions to create personalized 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,” Ugur Sahin, MD, CEO and Co-founder of BioNTech, said.

The transaction is expected to close in the first half of 2023, subject to customary closing conditions and regulatory approvals. Upon closing, InstaDeep will operate as a UK-based global subsidiary of BioNTech. In addition to BioNTech-focused projects, InstaDeep will continue to provide its services to clients around the world in diverse industries, including technology, transport & logistics, industrial, and financial services sectors.