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