Tunisia-founded enterprise artificial intelligence (AI) startup InstaDeep is set to be acquired by Nasdaq-listed German biotech company BioNTech SE in a deal that could eventually be worth GBP562 million (USD 684 M) to its shareholders. The transaction includes a total upfront consideration of approximately GBP362 million (USD 440 M) in cash and BioNTech shares to acquire 100% of the remaining InstaDeep shares, excluding the shares already owned by BioNTech. In addition, InstaDeep shareholders will be eligible to receive additional performance-based future milestone payments up to approximately GBP200 million (USD 243 M).

The acquisition supports 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 need. The transaction will combine two organizations with a common culture and is expected to add approximately 240 highly skilled professionals to BioNTech’s workforce, including teams in AI, ML, bioengineering, data science, and software development. 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, through this acquisition.

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, and is expected to become the centerpiece of a growing portfolio of initiatives around AI and ML at BioNTech.