Thermo Fisher Scientific, a U.S.-based instrumentation giant, has recently announced a $11.5 billion deal to acquire Qiagen NV, including net debt of €1.26 billion. The acquisition, which is expected to complete by the first half of 2021, was strategically made to surge the company’s (Thermo Fisher) health diagnostic capabilities.
Thermo Fisher made an offer of €39 per share, which was accepted at a 23% premium to the closing price of Qiagen. Morgan Stanley and JPMorgan served as Thermo Fisher’s financial advisors, with WLRK (Wachtell, Lipton, Rosen, & Katz) as the legal counsel. Qiagen’s lead financial advisor and financial advisor in the acquisition deal are Goldman Sachs and Barclays respectively, while Mintz Levin, Linklaters LLP, & De Brauw Blackstone Westbroek N.V served as the legal counsels.
Thermo Fisher is a leading producer of software, instruments and other scientific research services, holding a market value share of $120 billion. The company is working on developing vaccines & diagnostic tests to combat the coronavirus outbreak.
Qiagen is a genetic testing company, headquartered in Netherlands, with main operations in Germany. The company is a leading supplier of products used in advanced testing, for the preparation of blood and tissue samples. This genetic testing plays a vital role in research activities as well as the treatment of infectious disease, cancer, and genetic disorders. It is also a supplier of testing kits for coronavirus, which have been recently shipped to various Chinese hospitals. The virus has claimed the lives of more than 3,000 people, with nearly 90,000 infected patients reported globally, spreading to 77 countries and territories.
Following the news of the acquisition, Qiagen’s stock price has seen a significant rise of 18%, reaching €37.5, keeping on track for the best daily gain of the company in 2 decades. Thermo Fisher’s initial acquisition offer was rejected by Qiagen due to its dissatisfaction with the offer price.
After the closure of the acquisition deal, Thermo Fisher is expected to generate $200 million savings within 3 years.