Twist Bioscience Spins Out DNA Data Storage as Independent Company
SOUTH SAN FRANCISCO, Calif.–Twist Bioscience Corporation (NASDAQ: TWST) has announced the spin-out of its DNA data storage technology application as an independent company named Atlas Data Storage (“Atlas”). The new company will focus solely on DNA data storage technology and commercialization, backed by $155 million in seed financing from investors including ARCH Venture Partners, Deerfield Management, and Bezos Expeditions.
The spin-out is expected to unlock value by accelerating data storage technology development and allowing each company to focus strategically on its unique products, customers, and investors. Varun Mehta, previously founder of Nimble Storage, will serve as CEO of Atlas Data Storage. Twist will retain minority ownership 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.
“There are many applications of synthetic DNA with the potential to have an incredible impact on the world,” said Emily M. Leproust, Ph.D., CEO and co-founder of Twist. “With this spin-out, both Twist and Atlas are able to move with full force in growing those applications.” Twist remains focused on serving customers across the life sciences spectrum and expanding revenue and gross margin while driving toward adjusted EBITDA breakeven, now expected 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 a minority ownership interest, an upfront cash payment, and a secured promissory note. 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.
The transaction is expected to benefit both companies. Atlas will be able to focus solely on bringing DNA data storage from technology to commercialization, while Twist continues to share in the upside opportunity for DNA data storage. “The data storage market has enormous potential as humans, corporations, and organizations generate more and more data that needs to be preserved,” said Varun Mehta, CEO of Atlas Data Storage. “With technology licensed from Twist and an initial close, Atlas is well-positioned to drive toward commercialization.”
Twist co-founder and general manager of DNA data storage, Bill Banyai, Ph.D., will move to Atlas and serve as its CTO. Emily Leproust, CEO and co-founder of Twist, will serve on the board of directors of Atlas. The spin-out was approved by an independent special committee of the Twist Board of Directors. Jefferies LLC served as financial advisor to the independent special committee and to Twist.
