Genetic diagnostics company Ambry Genetics Corp. concluded the year with a large corporate change, completing its up to $1 billion sale to Japanese printer maker Konica Minolta Inc.
The deal is comprised of an $800 million upfront payment and additional milestone payments of up to $200 million.
Joint buyers were Konica and Innovation Network Corp. of Japan—a public-private partnership of the Japanese government and 26 major corporations—60% and 40%, respectively.
The search for a buyer started in 2016. But work for Ambry Chief Financial Officer Michael Martinson, the winner of the Business Journal CFO of the Year award for rising star, is far from done (see profiles, pages 1, 4, 5 and 6).
Foreign Owned, Publicly Traded
Martinson said it wasn’t “a situation where we are super busy for a year and now we are back to normal and have a lot of free time.”
He said the reality of the business is that there’s a whole new challenge of bringing two companies together, as well as new responsibilities and financial requirements, now that Ambry is no longer a private company.
“We’ll look at staffing, continue to add to the team on an ongoing basis based on our needs as we grow our organization,” Martinson said. He oversees a 10-person team of finance and accounting professionals, as well as a larger team of about 75 who work in revenue cycle management.
Ambry’s suite of genetic testing for inherited and noninherited diseases compliments Konica’s existing healthcare arm—primarily X-ray diagnostic imaging systems, ultrasounds and other diagnostic devices. Konica owns High Sensitive Tissue Testing, a proprietary cancer-detecting technology using fluorescent nanoparticles.
The move is part of Konica’s effort to accelerate development of its medical platform to advance precision medicine, using genetic or molecular analysis to match patients with the most appropriate treatments for their specific diseases.
Business-Minded
Martinson went to California State University-Fullerton for a bachelor’s degree in business administration and accounting.
“When I started out in college I wanted to study business, but didn’t know what to focus on until I met a mentor at Fullerton … I thought accounting was a good place to start for me to get the knowledge set, and I started my career in public accounting,” he said. He worked for Newport Beach-based Squar Milner for about five years before joining Ambry.
Martinson said he naturally gravitated toward biotech and life sciences clients. “It was fun for me to see 10 to 12 different clients every year to see how they operate differently … but I always found myself being fascinated by their industry.”
He joined Ambry in 2012 as controller when it was a “relatively small company, only three people on our team.”
Ambry, founded in 1999, generated revenue of $288 million in 2016.
Martinson said he would advise young accountants to spend two to five years in public accounting to pack in the base knowledge before deciding whether “you want to make a career with public accounting or move into corporate support management.”
Family
Martinson thanked his wife, Pam, when he accepted the award. The two had a second child last year. “She did all the work while I was selling the company for a $1 billion exit,” he joked.
They met online. Martinson, who said he waited further along in life to get married, said it was a good thing. “In Pam I saw a best friend, someone very like-minded. We like spending time together and like the same things. It was an easy decision,” he said.
They have a 6-year-old daughter and an 18-month son.
Outside of work, he and Pam enjoy outdoor activities and raising their children. “We’re outdoorsy people, we like to travel,” Martinson said.
The couple enjoys hiking and visiting mountains and deserts.
Humbled
“I wasn’t anticipating things would go that far, it was nice to have the nomination—that in itself was amazing,” said Martinson, who added that he’s humbled by the experience.
He said the success of Ambry comes from collaboration and evolution. “You have to be willing to evolve because things are always changing, and you encounter new problems. Collaboration, because it takes a whole company, not just one person … if you didn’t have the people devoted to the organization, that makes it harder to be successful.”
