A company flag flies in front of the offices of Thermo Fisher Scientific in Waltham, Massachusetts, U.S., August 2, 2023. Portal/Brian Snyder/File Photo Acquire LICENSE RIGHTS
Oct 17 (Portal) – Thermo Fisher Scientific (TMO.N) would acquire Olink Holding AB (OLK.O) in a $3.1 billion deal, the companies said on Tuesday, as the U.S. manufacturer medical devices wants to expand its life sciences portfolio that supports drug discovery.
The deal saw Olink’s U.S.-listed shares rise nearly 67% in early trading, while shares of Thermo Fisher fell over 1%.
Thermo Fisher is struggling with slowing demand for its life sciences offerings, which include the discovery and production of new drugs and vaccines, as its biotech customers face a funding crisis.
Sweden-based Olink provides products and services for the advanced analysis of proteins that are key markers of several diseases and in turn aid in drug discovery and development.
The acquisition of Olink will help Thermo Fisher’s customers in the biotech industry “significantly accelerate discoveries and scientific breakthroughs,” said Marc Casper, CEO of Thermo Fisher.
The deal also includes approximately $143 million in net cash.
Thermo Fisher said it would pay Olink shareholders $26 per share, a premium of about 74% to the U.S.-listed stock’s closing price on Monday.
Thermo Fisher plans to fund the transaction using its cash and debt capital and expects the transaction to close by mid-2024.
The deal is a good fit for Thermo Fisher and “strategically checks the box,” Evercore ISI analyst Vijay Kumar wrote in a note.
Olink is on track to generate more than $200 million in revenue next year and is expected to achieve mid-teens organic growth as part of Thermo Fisher, the companies said.
Reporting by Mariam Sunny in Bengaluru; Edited by Krishna Chandra Eluri and Shilpi Majumdar
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