GeneDx has agreed to acquire Fabric Genomics in a transaction valued at up to $51m, as the company advances its strategy to decentralise genomic testing while centralising data analysis.
The deal includes $33m in upfront cash consideration, with the remaining amount contingent on future milestone achievements.
Fabric Genomics has developed an artificial intelligence (AI)-based genomic interpretation platform, which has been deployed in multiple healthcare systems, academic institutions, and research networks worldwide.
GeneDx, listed on Nasdaq under the ticker symbol WGS, intends to integrate Fabric Genomics’ AI software into its existing operations to support a broader decentralised testing model across global markets.
The proposed acquisition has received unanimous approval from the GeneDx’s board of directors. It represents a strategic move toward enabling health systems to perform sequencing locally while leveraging GeneDx’s interpretation infrastructure remotely.
The company indicated that the integration of Fabric Genomics’ platform would allow for greater scalability in delivering genomic insights.
GeneDx CEO Katherine Stueland said: “Healthcare is at an inflection point where integrating genomic insights into standard care is becoming essential – both for better clinical outcomes and for saving the healthcare system valuable dollars. To achieve this, we must evolve and provide adaptable solutions so this information can be used more proactively and without geographic constraints.
“Adding Fabric Genomics and their talented team moves us closer to that future, enabling our partners to deliver groundbreaking genomic insights to patients across the globe.”
Following the close of the transaction, Fabric Genomics will continue to operate independently. GeneDx plans to provide commercial support to the Fabric Genomics team both in the US and in international markets.
The transaction is set to extend GeneDx’s reach into several key diagnostic segments. One area includes neonatal intensive care unit (NICU) genomic testing.
Although more than 400,000 infants are admitted to NICUs annually in the US, less than 5% currently receive genomic testing. GeneDx expects the deployment of Fabric Genomics’ interpretation tools to help health systems address this gap by integrating sequencing infrastructure into existing clinical workflows.
Another growth area is genomic newborn screening. With approximately 3.7 million births annually in the US and over 130 million globally, GeneDx sees an opportunity to support both public and private newborn genomic screening programmes.
The acquisition is also aligned with global trends toward data sovereignty and localised sequencing.
Fabric Genomics’ cloud-native architecture is designed to comply with jurisdictional data regulations, enabling GeneDx to offer its AI interpretation capabilities across multiple regions.
The platform supports several commercial configurations, including software-as-a-service (SaaS), interpretation-as-a-service (IaaS), and embedded solutions for national laboratories.
GeneDx’s existing dataset includes more than 750,000 exome and genome sequences. According to the company, this dataset serves as a foundation for AI model development and clinical decision support systems.
With the acquisition, Fabric Genomics’ software will be deployed to extract value from these data assets, converting them into recurring revenue through interpretation services offered across institutions and geographies.
The combination is expected to broaden GeneDx’s addressable market and open new revenue streams.
GeneDx has outlined its intention to leverage Fabric Genomics’ presence in institutions that already perform in-house sequencing, allowing for rapid implementation of the interpretation layer without the need for additional wet-lab infrastructure.
Fabric Genomics co-founder and CEO Martin Reese said: “Together, we’ll make genome interpretation faster, more scalable, and more impactful, enabling clinicians to deliver precise answers and care to patients worldwide.”
Subject to regulatory and closing conditions, the acquisition is expected to be finalised in Q2 2025.
