Filed by Illumina, Inc.
pursuant to Rule 425
under the Securities Act of 1933 and
deemed filed pursuant to Rule 14a-12
under the Securities Exchange Act of 1934
Subject
Company: Solexa, Inc.
Commission File No. 000-22570
The
following is a letter from Jay T. Flatley, President and Chief
Executive Officer of Illumina, Inc., to employees of Illumina, Inc.:
November 13, 2006
Hi all,
I am pleased to announce today that Illumina has signed a definitive agreement to acquire Solexa,
Inc. This is an important step in Illuminas strategic growth plan. By integrating Solexas next
generation sequencing platform into our core technologies we expect to create a unique genetic
analysis product portfolio that addresses the fastest growing markets in the life sciences
industry. Todays market opportunity in sequencing is estimated at $1 billion and is expected to
realize accelerated growth due to advances in sequencing technology. This market is additive to
our already large addressable market of approximately $1 billion. This transaction will position
us to provide an integrated solution for the key segments of this market. The attached press
release provides more detail on the terms of the acquisition, which is expected to close by the end
of the first quarter of 2007.
Solexa is headquartered in Hayward, CA, with operations in Little Chesterford, near Cambridge,
England and currently has 175 employees. The company has developed a proprietary, next generation
genetic analysis system for use in whole genome sequencing, targeted resequencing, digital gene
expression and micro RNA analysis. Solexa has patented sequencing by synthesis technology which
holds the promise of reducing the cost of sequencing a human genome from $15 million to $100,000.
Solexas 1G Genome Analyzer and future products are expected to enable researchers to conduct whole
genome resequencing, targeted resequencing and other applications at unparalleled throughput and
costs, much as our BeadArray products have revolutionized the genotyping field. This combination
is expected to accelerate the commercialization and market expansion of the 1G through our
worldwide direct sales and support network. Jointly, our R&D teams will have the tools to
integrate genotyping and sequencing in unique ways, as well as take advantage of the discovery of
novel content stemming from projects conducted on our platforms in the research and clinical
markets.
We are excited about this transactions potential to expand Illuminas penetration into
complementary markets, very much like our acquisition of CyVera provided access to the lower
multiplex, clinical diagnostics marketplace. We believe this combination with Solexa will allow us
to continue to achieve industry-leading growth rates and profitability, while simultaneously
becoming a more comprehensive supplier of tools to the life sciences industry.
In Solexa weve found a highly complementary business with the right set of employee skills,
technology and products to expand our growth prospects. After the transaction is completed, John
West, CEO of Solexa, will be joining Illumina as Senior Vice President and General Manager of our
new Sequencing Business Unit. Well also be welcoming two of their current Board members to the
Illumina Board of Directors.
In closing, I want to thank you for your commitment to Illumina. We know that you may have
questions about this transaction and its implications for Illumina. John Stuelpnagel will hold an
employee meeting at 10:00 AM PST in San Diego to explain what weve announced today more fully. On
Friday, John West and I will host an open forum at Illumina to discuss any questions you may have.
In the meantime, I ask for your continued focus and hard work as we complete the acquisition of
Solexa.
Jay
Forward-Looking Statements
This communication contains forward-looking statements that involve risks and uncertainties.
Illumina, Inc. (Illumina) and Solexa, Inc. (Solexa) caution readers that any forward-looking
information is not a guarantee of future performance and actual results could differ materially
from those contained in the forward-looking information. Words such as expect, estimate,
project, budget, forecast, anticipate, intend, plan, may, will, could, should,
believes, predicts, potential, continue and similar expressions are intended to identify
such forward-looking statements. Such forward-looking statements include, but are not limited to,
statements about the benefits of the transaction between Illumina and Solexa, future financial and
operating results, the combined companys plans, objectives, expectations and intentions and other
statements that are not historical facts.
Among the important factors that could cause actual results to differ materially from those in any
forward-looking statements are the ability to obtain regulatory approvals of the transaction on the
proposed terms and schedule; the failure of Illumina or Solexa stockholders to approve the
transaction; the failure of Illumina or Solexa to satisfy the other conditions to the transaction;
the risk that the businesses will not be integrated successfully; the risk that the anticipated
synergies and benefits from the transaction may not be fully realized or may take longer to realize
than expected; disruption from the transaction making it more difficult to maintain relationships
with customers, employees or suppliers; competition and its effect on pricing, spending,
third-party relationships and revenues. Additional important factors that may affect future
results are detailed in Illuminas and Solexas filings with the Securities and Exchange Commission
(the SEC), including their recent filings on Forms 10-K and 10-Q, or in information disclosed in
public conference calls, the dates and times of which are released beforehand. Illumina and Solexa
disclaim any intent or obligation to update these forward-looking statements.
Additional Information
In connection with the proposed merger, Illumina will file with the SEC a Registration Statement on
Form S-4 that will include a joint proxy statement of Illumina and Solexa that also constitutes a
prospectus of Illumina. Illumina and Solexa will mail the joint proxy statement/prospectus to
their respective stockholders. Investors and security holders are urged to read the joint proxy
statement/prospectus regarding the proposed merger when it becomes available because it will
contain important information. You may obtain a free copy of the joint proxy statement/prospectus
(when it is available) and other related documents filed by Illumina and Solexa with the SEC at the
SECs website at www.sec.gov. The joint proxy statement/prospectus (when it is available) and the
other documents may also be obtained for free by accessing Illuminas website at www.illumina.com
under the tab Investors and then under the heading SEC Filings or by accessing Solexas website
at www.solexa.com under the tab Investors and then under the heading SEC Documents.
Participants in the Solicitation
Illumina and Solexa and their respective directors, executive officers and certain other members of
management and employees may be soliciting proxies from stockholders in favor of the merger.
Information regarding the persons who may, under the rules of the SEC, be considered participants
in the solicitation of the stockholders in connection with the proposed merger will be set forth in
the joint proxy statement/prospectus when it is filed with the SEC. You can find information about
Illuminas executive officers and directors in Illuminas definitive proxy statement filed with the
SEC on April 26, 2006. You can find information about Solexas executive officers and directors in
their definitive proxy statement filed with the SEC on August 31, 2006. You can obtain free copies
of these documents by using the contact information provided at Illuminas or Solexas website.