- Thermo Fisher recently announced it is buying coronavirus diagnostics company Qiagen. These are the details about the deal.
As one of the largest healthcare tech deals in 2020, Thermo Fisher is buying coronavirus diagnostics company Qiagen NV for €9 billion. QIAGEN is considered a leading global provider of molecular diagnostics and sample preparation technologies. The deal has been approved by the boards of directors at both companies as well as the managing board of QIAGEN.
Thermo Fisher’s proposal was to buy QIAGEN for €39 per share in cash. This offer represented a premium of approximately 23% to the closing price of QIAGEN’s common stock on the Frankfurt Prime Standard on March 2, 2020, which is the last trading day prior to the announcement of the transaction. And Thermo Fisher will commence a tender offer to acquire all of the ordinary shares of QIAGEN.
This transaction valued QIAGEN at approximately $11.5 billion at current exchange rates — which included the assumption of approximately $1.4 billion of net debt.
QIAGEN currently employs approximately 5,100 people at 35 locations in more than 25 countries. And the company generated 2019 revenue of $1.53 billion.
The company’s sample preparation technologies are used to extract, isolate and purify DNA, RNA, and proteins from a wide range of biological samples. And the company’s assay technologies are then used to amplify and enrich these biomolecules to make them readily accessible for analysis. Plus QIAGEN’s instruments can be used to automate these workflows while its bioinformatics systems provide customers with relevant and actionable insights.
There are several benefits of the transaction. It will expand Thermo’s specialty diagnostics portfolio with attractive molecular diagnostics capabilities, including infectious disease testing. Thermo Fisher had built leading specialty diagnostics capabilities, including allergy and autoimmunity, transplant diagnostics and clinical oncology testing.
QIAGEN has a major presence in molecular diagnostics with a product portfolio focused on infectious disease and other growth opportunities. And the combined company will accelerate the development of higher-specificity, faster and more comprehensive tests that may improve patient outcomes and reduce the cost of care.
Another benefit is a complementary offering that enhances a unique value proposition for life sciences customers. For life sciences researchers, QIAGEN’s sample preparation, assay, and bioinformatics technologies are complementary to Thermo Fisher’s genetic analysis and biosciences capabilities. For example, Thermo Fisher will be able to provide research customers with broader capabilities to accelerate discovery and enable scientific breakthroughs.
Thermo Fisher will also be able to utilize its extensive commercial reach, including its Fisher Scientific customer channels and comprehensive e-commerce platforms, to expand customer access to QIAGEN’s product portfolio. And given Thermo Fisher’s leading presence in high-growth and emerging markets, QIAGEN will be able to further penetrate these regions.
This transaction is expected to be immediately accretive to Thermo Fisher’s adjusted EPS after the close. Thermo Fisher is expecting to realize total synergies of $200 million by year three following the close, consisting of $150 million of cost synergies and $50 million of adjusted operating income benefit from revenue synergies.
This transaction is expected to be completed in the first half of 2021 and it is subject to the satisfaction of customary closing conditions, including the receipt of applicable regulatory approvals, the adoption of certain resolutions relating to the transaction at an Extraordinary General Meeting of QIAGEN’s shareholders, and completion of the tender offer.
Key Quotes:
“We are excited to bring together our complementary offerings to advance our customers’ important work, from discovery to diagnostics. This acquisition provides us with the opportunity to leverage our industry-leading capabilities and R&D expertise to accelerate innovation and address emerging healthcare needs. For shareholders, we expect the transaction to be immediately accretive and to generate significant cost and revenue synergies.”
-Marc N. Casper, chairman, president and chief executive officer of Thermo Fisher Scientific
“Our vision at QIAGEN has always been to make improvements in life possible with our differentiated Sample to Insight molecular testing solutions. This strategic step with Thermo Fisher will enable us to enter a promising new era and will give our employees the opportunity to have an even greater impact. The combination is designed to deliver significant cash value to our shareholders, while enabling us to accelerate the expansion of our solutions to provide customers worldwide with breakthroughs that advance our knowledge about the science of life and improve health outcomes.”
“We look forward to welcoming QIAGEN’s employees to Thermo Fisher and are excited about the new opportunities we’ll have to advance precision medicine through new molecular diagnostics and improved life sciences workflows.”
-Thierry Bernard, interim chief executive officer of QIAGEN N.V. and senior vice president / head of the molecular diagnostics business area
