Details of the deal between Thermo Fisher Scientific Inc. and Qiagen NV
One of the largest manufacturers of equipment for clinics and laboratories Thermo Fisher from the USA has announced its intention to acquire Qiagen NV from the Netherlands. The latter is engaged in the production of medical tests, primarily for the detection of oncology and coronavirus. The purchase price will be $11.5 billion, with Thermo Fisher reimbursing the debt of the test manufacturer in the amount of $1.4 billion.
Interest in Qiagen NV arose because of the pandemic, which swept the world. The value of its shares rose significantly, and Thermo Fisher Scientific Inc. decided to buy back the securities for 39 euros each. This amount is 23% higher than the share price offered on the stock exchanges.
Thermo Fisher plans to take the funds for this acquisition from its own capital as well as to resort to borrowing. The U.S. company believes Qiagen NV has high hopes. The management of the equipment manufacturer is confident that they will be able to increase the profit of the test manufacturer already in the first half of next year. At the same time, the purchase will allow Thermo Fisher itself to save about $200 million over the next 3 years.
For a company from the U.S., the deal will be the largest since 2014. Then it invested $13.6 billion in the development of DNA testing, which was conducted by Life Technologies Corp.
Qiagen products are extremely relevant now that many people have symptoms of coronavirus and get sick. Tests by the Dutch manufacturer are used in France, China and other countries. As a result of this diagnosis, it is possible to get a result for the presence or absence of the virus within 60 minutes.
Qiagen shares have increased in price by about 20% over the last month, and last year they rose by more than 10%.
Thermo Fisher Scientific is well known on the world market. The company manufactures laboratory equipment, diagnostic materials and tools for scientific research related to biology, medicine, chemistry and other industries. Annual profit is about $24 billion, the staff of more than 50 thousand people.
Products are used by more than 350 thousand customers, including pharmaceutical and biotechnology companies, clinics, research institutes, organizations that deal with environmental issues and many others.
Thermo Fisher was founded in 2006 in Massachusetts through a merger of two companies. Gradually, the manufacturer began to join other firms to its structure, including suppliers of reagents and measuring instruments, software equipment for laboratories, research centers.