On February 1, Mgi Tech Co.,Ltd. (688114.SH) announced its plan to acquire 100% equity in Shenzhen Huada Sanjian Qifa Technology Co., Ltd. and Hangzhou Huada Xufeng Technology Co., Ltd. for a total of 366 million yuan, thereby fully incorporating two core assets—spatiotemporal omics and nanopore sequencing—into its portfolio. This move not only represents a significant deepening of its core technology layout but also marks MGI's official consolidation of three strategic pillars: "AI + Life Sciences + Brain-Computer Interface," further cementing its position as a global leader in gene sequencing and enabling it to seize first-mover advantages across multiple cutting-edge fields, spearheading the industry's development wave.
The most critical breakthrough of this acquisition lies in forging a globally unique technological barrier in the upstream life sciences sector. As an industry leader, MGI now possesses full-read-length sequencing (combining short-read DNBSEQ technology with long-read CycloneSEQ technology), augmented by the Stereo-seq spatiotemporal omics technology, ultimately forming a comprehensive "short-read + long-read + spatial omics" technology chain, making it the world's sole core life sciences tools manufacturer covering these three frontier technologies.
From a technical parameter perspective, the long-read technology (CycloneSEQ) already rivals international leader Oxford Nanopore Technologies (ONT) in areas such as single-chip throughput and direct methylation detection; meanwhile, its sequencing accuracy and speed, through rapid iterations, have reached industry-leading levels. The spatiotemporal omics technology (Stereo-seq) also demonstrates significant advantages over comparable products from 10X Genomics in terms of capture area, resolution, and multi-level analysis capabilities. Post-acquisition, MGI will effectively become the Chinese equivalent of "Illumina + ONT + 10X Genomics"—that is, the only life sciences enterprise globally with a complete product matrix covering "full-read-length sequencing + spatial omics."
Regarding the rationality of the transaction pricing, this acquisition also represents a precise, "low-cost, high-value" strategic move by MGI in frontier core technology sectors. Compared to financing valuations of similar institutions within the industry, the transaction price more accurately reflects the actual business value of the targets, allowing MGI to achieve core asset integration with a more economical investment and reducing the cost of external expansion.
Furthermore, the two target companies have provided performance commitments, accompanied by cash compensation and impairment compensation mechanisms. Pre-closing losses will be covered in cash by the sellers, while profits will accrue to MGI, thereby further locking in risk exposure and maximizing the protection of investor interests.
In terms of positioning within frontier sectors, this acquisition further strengthens MGI's first-mover advantage. In the AI healthcare domain, MGI's "AI + gene sequencing"布局 is already at an industry-leading level. By continuously upgrading its Global Laboratory Intelligence (GLI) business and accelerating the development of AI-driven software tools, it is solidifying the foundational support for an intelligent ecosystem. In the brain-computer interface field, the newly incorporated Stereo-seq spatiotemporal omics technology can provide centimeter-scale panoramic fields of view with nanometer-level resolution for precise navigation, laying the core foundation for breakthroughs in implantable brain-computer interface technology.
Market analysts view this acquisition as a highly cost-effective key move in MGI's external expansion strategy. It not only secures core assets at an attractive price but also builds a formidable moat through its globally unique technology chain. Bolstered by the dual advantages of technological chain uniqueness and leadership, the company's long-term profitability and industry influence are expected to be further enhanced.
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