Twist Bioscience Spins Out DNA Data Storage Platform into New Independent Company, Atlas Data Storage
Twist Bioscience Corporation (NASDAQ: TWST), a leading and innovative company operating in the mid-cap growth and value segment of the life sciences sector, has officially announced the spinout of its DNA data storage technology platform into a newly formed independent entity. The new company, named Atlas Data Storage (“Atlas”), will focus exclusively on advancing and commercializing DNA-based data storage solutions.
This strategic move marks a significant milestone in Twist Bioscience’s long-term growth strategy, as the company seeks to streamline operations, sharpen its core focus, and unlock additional value from its technology assets. The spinout allows Atlas to emerge as a pure-play DNA data storage company, backed by strong intellectual property and positioned to capitalize on the exponential demand for novel data archiving solutions.
Driving Innovation Through Focus
“There are many applications of synthetic DNA with the potential to have an incredible impact on the world. With this spinout, both Twist and Atlas are able to move with full force in growing those applications,” stated Emily M. Leproust, Ph.D., CEO and co-founder of Twist Bioscience. “Through this transaction and the establishment of a dedicated DNA data storage entity, Atlas gains the investment, autonomy, and focus required to accelerate technology development and engage with early-access customers. At the same time, Twist remains strategically aligned and positioned to benefit from future upside opportunities related to this breakthrough technology.”
Leproust emphasized that the creation of Atlas represents a pivotal shift that allows Twist to optimize resource allocation and increase focus on its primary growth initiatives. This includes driving core business revenue, expanding synthetic biology and genomics applications, and ultimately achieving profitability milestones.
“With the launch of Atlas and a clearer operational roadmap ahead, we now expect to achieve adjusted EBITDA breakeven by the end of fiscal 2026,” Leproust added.
Terms of the Transaction
Under the definitive contribution and license agreements signed by both parties, Twist Bioscience has assigned and licensed its proprietary DNA data storage technology to Atlas. In return, Twist will receive a minority equity interest in the new company, along with an upfront cash payment and a secured promissory note. Additionally, Twist stands to earn future commercial milestone payments and royalty revenue tied to Atlas’ product sales and service agreements.
Notably, Twist will continue to benefit from technology advancements made by Atlas, particularly in areas where those innovations can be applied to Twist’s existing or future product lines.
By retaining a significant economic interest in Atlas, Twist has preserved its exposure to the value creation potential of DNA data storage, while also delegating the operational and capital-intensive work of commercialization to an entity exclusively focused on that mission.
Atlas Data Storage: Mission and Leadership
The newly formed Atlas Data Storage will operate independently, with its own management team and board of directors. The company will be led by Varun Mehta, who will serve as CEO. Mehta brings more than two decades of experience in the data storage industry and has a proven track record of building and scaling high-tech companies. Most notably, he held leadership roles at Nimble Storage, which was acquired by Hewlett Packard, and other enterprise technology ventures.
“The data storage market has enormous long-term potential as global data generation continues to grow at an unprecedented pace,” said Mehta. “Organizations across sectors—from governments to healthcare providers and scientific institutions—are urgently seeking sustainable, scalable, and ultra-durable methods to store digital information. DNA storage offers unmatched longevity, density, and environmental resilience. With licensed technology from Twist and committed capital from leading investors, Atlas is uniquely positioned to bring this next-generation storage solution to the market.”
Alongside Mehta, Bill Banyai, Ph.D., co-founder of Twist and previously General Manager of the DNA data storage division, will transition to Atlas and serve as its Chief Technology Officer (CTO). Banyai’s extensive knowledge of the underlying technology and his leadership in building the platform from inception will be instrumental as Atlas moves toward product development, piloting, and eventual commercialization.
The board of directors for Atlas will include Emily Leproust, who will represent Twist Bioscience and support continued collaboration between the two companies. George Kadifa, Managing Director of Sumeru Equity Partners, will serve as Executive Chairman of Atlas’ board. Kadifa’s background in software, infrastructure, and data systems adds critical strategic value as Atlas prepares to navigate the commercial landscape of enterprise data storage.
Enabling the Commercial Future of DNA-Based Storage
Twist’s decision to spin out the DNA data storage business was carefully evaluated and approved by an independent special committee of its Board of Directors. The committee, tasked with ensuring fairness and alignment with shareholder interests, retained Jefferies LLC as its financial advisor throughout the process.
The market opportunity for DNA data storage continues to expand. According to industry forecasts, global data generation is expected to exceed 180 zettabytes by 2025, presenting an unprecedented challenge in storage and sustainability. Traditional magnetic and solid-state storage systems are increasingly energy-intensive, costly to scale, and limited by physical space and material availability.
DNA, by contrast, offers data density on the order of petabytes per gram and stability that can span thousands of years under the right conditions. The long-term promise of DNA storage lies not just in capacity, but also in environmental sustainability and security. With rising concerns over data center energy consumption and digital permanence, DNA-based storage has emerged as a highly compelling alternative for archival purposes.
Atlas plans to leverage its strong technology foundation to deliver storage systems that meet the rigorous needs of sectors such as aerospace, scientific research, finance, and government—markets where data integrity, retention, and security are paramount.
Strategic Outlook and Next Steps
With the formation of Atlas Data Storage, Twist Bioscience is executing on a broader strategy to focus on its core areas—synthetic biology, biopharma partnerships, and high-throughput DNA synthesis—while still maintaining a stake in pioneering technologies adjacent to its main business.
The launch of Atlas enables the DNA data storage unit to attract specialized talent, secure targeted funding, and develop go-to-market strategies independent of Twist’s organizational structure. It also allows for increased agility in technical development cycles, partner engagement, and customer acquisition efforts specific to long-term data archiving.
Twist’s forward guidance, reaffirmed alongside the announcement, targets adjusted EBITDA breakeven by fiscal year-end 2026, underscoring management’s confidence in its growth trajectory. The company expects the spinout to have no adverse impact on its ongoing business operations, and instead views it as a catalyst for unlocking new value streams while focusing on profitability and operational discipline.
Twist Bioscience Corporation is a leading synthetic biology and genomics company that has developed a disruptive DNA synthesis platform to address the vast potential of DNA-based applications. The company’s platform enables the rapid production of high-quality synthetic DNA and is utilized across industries including healthcare, agriculture, industrial chemicals, and data storage
Atlas Data Storage is an independent company dedicated to advancing DNA-based storage solutions for the digital era. With foundational technology licensed from Twist Bioscience and leadership with deep expertise in data infrastructure, Atlas is focused on developing commercial-scale solutions that address the rising demand for secure, scalable, and sustainable digital information storage
