M&A Report

Thermo Fisher, Siemens Healthineers and DiaSorin Headline a Super Dynamic Month in Deal Making

After a prolonged pandemic-induced lull, M&A deal making in the diagnostics market continued its resurgence in April. Here’s a review of what was clearly the most dynamic month in M&A since the COVID-19 crisis began last winter.

Thermo Fisher Scientific to Acquire PPD for $17.4 Billion

In 2020, Thermo Fisher Scientific was one of the most significant players in the clinical lab M&A space, most notably in its ultimately failed attempt to acquire Qiagen. But on April 15, Thermo Fisher reclaimed the headlines by announcing its agreement to acquire clinical research services provider PPD. In addition to shelling out $17.4 billion in cash, i.e., $47.50 per share of PPD common stock, Thermo Fisher will assume approximately $3.5 billion of the firm’s net debt.

Acquisition of the global clinical research and lab services firm whose operations in 50 different countries generated total revenues of $4.7 billion in 2020 will bolster the value that Thermo Fisher can deliver to its extensive network of pharmaceutical and biotech customers. Thermo Fisher plans to absorb PPD into its lab products and services business unit after the deal closes, which is expected to happen by the end of the year.

Siemens Healthineers Acquires Varian for $16.4 Billion

Dollar value-wise, the second biggest deal in April was the closing of Siemens Healthineers’ $16.4 billion acquisition of artificial intelligence (AI) firm Varian Medical Systems on April 15. The deal, which was announced last August, creates what the companies claim will be the diagnostics industry’s most comprehensive cancer care portfolio. The acquisition advances the companies’ ongoing EnVision strategic partnership that aims to create a digital, diagnostic and therapeutic ecosystem that includes treatment management. Siemens and Varian say they’ll use AI-assisted analytics to advance data-driven precision care while redefining cancer diagnosis, care delivery and post-treatment survivorship.

DiaSorin to Acquire Luminex for $1.8 Billion

After months of speculation and rumor, Luminex has finally found its strategic suitor. On April 12, DiaSorin announced that it has agreed to acquire Luminex for $1.8 billion in cash, $37 per common share. The acquisition of Luminex and its expansive portfolio of molecular tests, including assays for infectious diseases, respiratory infections, gastroenterology infections and women’s health will take Italy-based DiaSorin to a significantly higher level in the molecular testing and multiplexing technology marketing and, just as importantly, broaden its presence in the US.

Other Key M&A Developments

While the trio of billion-dollar deals were the headliners, there were a number of other significant M&A stories of April, including:

  • News that the US Federal Trade Commission and European regulatory authorities would seek to stop Illumina from acquiring Grail on antitrust grounds;
  • Hologic’s agreement to acquire Finnish molecular diagnostics maker Mobidiag, whose offerings include COVID-19 testing products cleared in the US and EU, for approximately $795 million; and
  • Quest Diagnostics’ divestment of its minority share in lab services firm Q2 Solutions to joint venture partner Iqvia for $760 million in cash.

Here’s a summary of the key new M&A diagnostic deals announced in April 2021:

MERGERS, ACQUISITIONS & ASSET SALES

Acquiring Company Target(s) Deal Summary
DiaSorin Luminex
  • Price: Roughly $1.8 billion in cash or $37 per share of Luminex stock
  • Status: Expected to close in Q3
  • Acquisition of Luminex’s multiplexing technology and molecular testing products bolsters DiaSorin’s position in molecular diagnostics
  • DiaSorin to merge Luminex with its newly formed US subsidiary
Thermo Fisher Scientific PPD
  • Price: $17.4 billion cash + assumption of roughly $3.5 billion of net debt
  • Status: Expected to close by end of 2021
  • Acquisition of global provider of clinical research and lab services for pharmaceutical and biotech industry to services which will be merged into Thermo Fisher’s laboratory products and services business unit
Agilent Technologies Resolution Bioscience
  • Price: $550 million cash up front + up to $145 million more if performance milestones reached
  • Status: Closed
  • Agilent moves into liquid biopsy market via acquisition of Revolution Bioscience’s NGS-based noninvasive liquid biopsy test platform designed for both centralized CLIA test services and distributable kits
Exact Sciences Ashion Analytics
  • Price: Undisclosed
  • Status: Closed
  • Acquisition of CLIA-certified and CAP-accredited sequencing lab from Translational Genomics Research Institute (TGen) boosts Exact Sciences’ efforts to develop precision oncology products, including minimal residual disease (MRD) and other sequencing-based tests
Siemens Healthineers Varian Medical Systems
  • Price: $16.4 billion all-cash merger deal for all of Varian’s outstanding shares for $177.50 per share, a roughly 42% premium over Varian’s 30-day volume-weighted average closing share price on July 31
  • Status: Closed
  • Acquisition of Varian’s artificial intelligence, machine learning and data analytics enable merged firm to provide services across cancer-care continuum, including screening, diagnosis, care delivery and post-treatment
Hologic Mobidiag
  • Price: Approximately $795 million, including $714 million cash + $81 million net debt
  • Status: Expected to close in Q4
  • Acquisition of Finland-based developer of molecular tests and instruments for infectious illnesses is Hologic’s third recent strategic acquisition in molecular diagnostics space
Invitae Genosity
  • Price: $200 million, including $120 million in cash + $80 million in shares of Invitae common stock
  • Status: Expected to close in Q2
  • Invitae to leverage Genosity’s software and lab solutions to accelerate development and decentralized market launch of somatic and germline oncology tests
Cancer Genetics StemoniX
  • Price: All-equity merger equity transaction in which Cancer Genetics obtains 100% of StemoniX’s shares in exchange for 78% of Cancer Genetics’ shares
  • Status: Closed
  • StemoniX, which develops high-density, at-scale human induced pluripotent stem cell-derived neural and cardiac screening platforms for drug discovery to keep its name and become wholly-owned sub of Cancer Genetics, which has been renamed Vyant Bio
Charles River Laboratories Retrogenix
  • Price: Undisclosed
  • Status: Closed
  • Charles River acquires early-stage contract research organization that uses proprietary cell microarray technology to provide bioanalytical services
Iqvia Quest Diagnostics
  • Price: $760 million cash
  • Status: Closed
  • Quest sells off its 40% share in Q2 Solutions, a lab services firm Q2 Solutions (previously called Quintiles Research) that it owned as a joint venture with Iqvia holding the other 60%
Bio-Techne Asuragen
  • Price: $215 million in cash up front + up to $105 million if Asuragen meets future milestones
  • Status: Closed
  • Bio-Techne uses cash on hand and its own revolving fund to acquire developer of genetic carrier screening and oncology testing kits using proprietary chemistries for testing platforms that are widely available
Immunai Dropprint Genomics
  • Price: Undisclosed
  • Status: Closed
  • Acquisition of single-cell genomics software company
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