Twist Bioscience Spins Out DNA Data Storage as Independent Company

Twist Bioscience Corporation announced that the company has spun out its DNA data storage technology application as an independent company, named Atlas Data Storage (‘Atlas’).

“There are many applications of synthetic DNA with the potential to have an incredible impact on the world. With this spin out, both Twist and Atlas are able to move with full force in growing those applications,” said Emily M. Leproust, Ph.D., CEO and co-founder, Twist. “With this transaction and a pure-play DNA data storage focused business, Atlas receives the investment needed to accelerate technology development and drive toward early access customer engagement while Twist continues to share in the upside opportunity for DNA data storage. This transaction also allows Twist to focus on continued revenue growth and our objective of achieving adjusted EBITDA breakeven and profitability. With the launch of Atlas, we now expect to achieve adjusted EBITDA breakeven by the end of fiscal 2026.”

Under the terms of the contribution and license agreements, Twist assigned and licensed its DNA data storage technology to Atlas in exchange for Twist receiving a minority ownership interest upon close, an upfront cash payment and a secured promissory note. Twist retains an ownership stake in Atlas and may participate in the upside of DNA data storage through future technology and commercial milestone payments, and a revenue share through royalties on future sales of Atlas’ products and services. In addition, Twist will benefit from technology advancements made by Atlas where it applies to Twist’s product groups.

“The data storage market has enormous potential as humans, corporations and organizations generate more and more data that needs to be preserved. By operating as an independent company, Atlas is able to focus solely on bringing DNA data storage from technology to commercialization and invest in all the functions needed to enter the commercial market,” said Varun Mehta, CEO, Atlas Data Storage. “With technology licensed from Twist and an initial close, Atlas is well positioned to drive toward commercialization.”

Emily Leproust, CEO and co-founder of Twist will serve on the board of directors of Atlas. The companies will operate independently with separate management teams. George Kadifa, managing director of Sumeru Equity Partners, will serve as executive chairman of the Atlas board and Varun Mehta, will serve as CEO of Atlas. Mr. Mehta brings significant experience in the data storage industry and has led several successful startups, including Nimble Storage, which was acquired by Hewlett Packard. Twist co-founder and general manager of DNA data storage, Bill Banyai, Ph.D., will move to Atlas and serve as its CTO.

An independent special committee of the Twist Board of Directors approved the process of the spin out and the terms of the agreement. Jefferies LLC served as financial advisor to the independent special committee and to Twist.