GAT is an N-acetyltransferase from Bacillus licheniformis that was optimized by gene shuffling for acetylation of the broad spectrum herbicide, glyphosate, forming the basis of a novel mechanism of glyphosate tolerance in transgenic plants ( Glyphosate (N-phosphonomethylglycine) is a widely used herbicide that acts nonselectively through inhibition of 5-enolpyruvylshikimate-3-phosphate (EPSP) 4 synthase in the aromatic biosynthesis pathway (2). Its efficacy against all plant species, low cost, low mammalian toxicity, and benign environmental impact favor its use in crops that have a transgenic tolerance mechanism (3). The predominant transgene currently in use encodes a bacterial EPSP synthase that is nearly insensitive to inhibition by glyphosate (2). We reported an alternative strategy for glyphosate resistance involving enzymatic conversion of glyphosate to N-acetylglyphosate (NAG) (1). Because the acetylated form of glyphosate has low affinity for the active site of EPSP synthase, it is nonherbicidal. Three variants of an enzyme that catalyzes N-acetylation of the secondary amine of glyphosate were discovered from Bacillus licheniformis. These GAT 5 enzymes are 17 kDa in size, are most active at pH 6.8, and have a K m for acetyl coenzyme A (AcCoA) of 1-2 M. The native enzymes are very poor catalysts for acetylation of glyphosate, with a k cat of 5.3 min Ϫ1 and K m,GPJ of 1.3 mM (for ST401 GAT, referred to hereafter as native GAT). 6 The B. licheniformis enzymes belong to a diverse family of largely uncharacterized bacterial N-acetyltransferases sharing between 30 and 64% amino acid identity to native GAT (Fig. 1). Despite extensive screening of biological amines, including amino acids, nucleotides and antibiotics, the physiological substrates for the native enzymes are unknown (4).To develop gat as a transgene for glyphosate resistance in crops, we subjected the three B. licheniformis enzymes to 11 rounds of gene shuffling and obtained optimized variants with up to a 4,500-fold increase in catalytic efficiency (k cat /K m ) relative to the native enzyme. This was achieved through a combination of improvements in k cat (190-fold) and K m,GPJ (24-fold). When introduced into plants, optimized gat genes confer robust tolerance to glyphosate (1).To gain insight into the molecular mechanism of glyphosate N-acetylation by GAT, we determined the structure of a 7th round GAT variant (termed R7 GAT) in ternary complex with AcCoA and the competitive inhibitor 3-phosphoglycerate (3PG) and in binary complex with oxidized CoA. We also car-* The costs of publication of this article were defrayed in part by the payment of page charges. This article must therefore be hereby marked "advertisement" in accordance with 18 U.S.C. Section 1734 solely to indicate this fact. The atomic coordinates and structure factors (code 2JDC, 2JDD) have been deposited in the Protein