In a strategic move to enhance its capabilities in life sciences, Thermo Fisher Scientific and Olink Holding AB jointly announced on Tuesday their agreement for Thermo Fisher to acquire the Sweden-based company in a transaction valued at $3.1 billion.
Thermo Fisher, a prominent U.S. medical equipment manufacturer, aims to leverage this acquisition to fortify its position in the field of drug and vaccine development through the expansion of its life sciences portfolio. Olink Holding AB specializes in providing cutting-edge products and services for advanced protein analysis, a pivotal element in the realms of diagnosis and drug development. These resources are poised to greatly expedite research endeavors within the biotechnology industry, a vital sector for Thermo Fisher’s customer base.
Marc Casper, CEO of Thermo Fisher, emphasized the transformative potential of this acquisition, asserting that it will empower the company’s clientele to “meaningfully accelerate discovery and scientific breakthroughs.” As part of the deal, approximately $143 million in net cash will be transferred. Olink’s shareholders are slated to receive $26 per share, representing an impressive 74% premium over the stock’s closing price on the preceding Monday.
To fund the acquisition of Olink Holding AB , Thermo Fisher has disclosed plans to utilize a combination of cash reserves and debt financing. The transaction is projected to reach completion by mid-2024, pending regulatory approvals.
Analysts have greeted Thermo Fisher’s strategic move with enthusiasm, deeming the acquisition a well-aligned step for the company. Vijay Kumar, an analyst at Evercore ISI, affirmed in a note that the acquisition aptly fulfills strategic objectives. Furthermore, Olink is poised to generate upwards of $200 million in revenue in the upcoming year, and as an integral part of Thermo Fisher, is anticipated to sustain mid-teens organic growth.
Upon announcement of the deal, Olink’s U.S.-listed shares experienced a surge of 67% in early trading, demonstrating robust investor confidence in the strategic alignment of the two companies. Meanwhile, shares of Thermo Fisher experienced a marginal 1% decline.
In sum, Thermo Fisher Scientific’s strategic move to acquire Olink Holding AB presents a significant opportunity to broaden its life sciences portfolio. This acquisition is poised to empower biotechnology industry clients to make rapid and impactful discoveries, potentially paving the way for advancements in drug and vaccine development, and ultimately contributing to a brighter future.
Source: Reuters
