US scientific instruments maker Thermo Fisher Scientific has abandoned its plans to acquire molecular diagnostic technology provider Qiagen after failing to convince the target’s shareholders of the deal’s benefits.
The companies have now terminated their agreement, as part of which the buyer was to pay EUR 11.30 billion for the business.
Thermo Fisher had originally agreed to acquire Qiagen back in March and was to pay EUR 39.00 per item of stock, thereby valuing the transaction at EUR 10.35 billion.
Last month, it upped the offer price to EUR 43.00 per share following investor pressure and the minimum acceptance level was decreased from 75.0 per cent to 66.7 per cent.
However, it appears the gesture was made in vain as only 47.0 per cent of shareholders tendered their holdings and the bid lapsed as a consequence.
Shares in Qiagen were trading at EUR 41.46 as of 15:38 on 13th August, following the deal’s termination.
According to Zephyr, the M&A database published by Bureau van Dijk, Thermo Fisher Scientific’s most recent acquisition closed in May 2019, when it paid USD 1.70 billion for Massachusetts-based in-vivo gene therapy viral vectors manufacturer Brammer Bio MA.
This was preceded by the purchase of Becton Dickinson and Company’s advanced bioprocessing business, which it bought for an undisclosed consideration in October 2018.
Qiagen has a global customer base numbering 500,000 and employs 5,200 people.
The company’s core product range is 500-strong.
It posted net sales of USD 443.25 million in the three months to 30th June 2020, up from USD 381.61 million over the corresponding timeframe of last year.
© Zephus Ltd