Thermo Fisher Scientific (NYSE:TMO) has announced its intention to acquire Olink Holding AB (NASDAQ:OLK) in a deal valued at $3.1 billion. This acquisition is part of Thermo Fisher’s strategy to strengthen its life sciences portfolio, particularly in the area of drug discovery. The deal has had a significant impact on the stock prices of both companies, with Olink’s U.S.-listed shares surging nearly 67% in early trading, while Thermo Fisher’s shares dipped over 1%.
Thermo Fisher has been facing challenges in its life sciences segment, with softening demand for its offerings related to drug and vaccine discovery, as some of its biotech clients grapple with funding constraints.
Olink, based in Sweden, specializes in products and services for advanced protein analysis, focusing on key markers of various diseases. These protein markers are crucial for advancing drug discovery and development.
Thermo Fisher’s CEO, Marc Casper, expressed that the acquisition of Olink will enable the company’s biotech industry customers to accelerate their scientific breakthroughs and discoveries.
The deal includes net cash of about $143 million. Thermo Fisher will pay Olink shareholders $26 per share, representing a significant premium of about 74% over Olink’s U.S.-listed stock’s closing price on the day before the announcement.
Thermo Fisher intends to finance the acquisition using its cash reserves and debt financing and expects to complete the deal by mid-2024. According to Evercore ISI analyst Vijay Kumar, the acquisition aligns well with Thermo Fisher’s strategic goals, and Olink is on track to generate over $200 million in revenue next year. As part of Thermo Fisher, Olink is expected to achieve mid-teens organic growth.
The deal is seen as a strategic move for Thermo Fisher to enhance its capabilities in life sciences and expand its offerings in drug discovery and development.
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