Bruker to acquire in-vitro diagnostics company ELITechGroup for €870m

Bruker Corporation (Nasdaq: BRKR) has solidified its position in the global life-science and diagnostics market through a definitive share purchase agreement to acquire ELITechGroup from TecFin S.à r.l., a controlled affiliate of PAI Partners, a leading private equity firm. The acquisition, valued at €870 million in cash and excluding ELITech’s clinical chemistry business, marks a significant expansion of Bruker’s diagnostics division. This strategic move is aimed at enhancing Bruker’s offerings in the molecular diagnostics (MDx) and microbiology sectors.

At the forefront of this acquisition is the integration of ELITechGroup’s innovative molecular diagnostic systems, InGenius and BeGenius, into Bruker’s product lineup. These systems are recognized for their efficiency in processing a wide range of PCR diagnostic assays for various infections. With over 500 employees and more than 40 active patents, ELITechGroup brings a robust portfolio of MDx systems, assays, and niche biomedical products to Bruker. This acquisition is expected to close in the second quarter of 2024, pending regulatory approvals and other customary closing conditions.

Dr. Wolfgang Pusch, President of Bruker’s Microbiology and Infection Diagnostics division, emphasized the complementary nature of ELITech’s MDx business to Bruker’s existing offerings. He highlighted the potential for synergy in providing a comprehensive suite of diagnostic solutions, particularly in infectious disease diagnostics. Dr. Christoph Gauer, CEO of ELITechGroup, expressed enthusiasm about the merger, citing the opportunity for growth and innovation within Bruker’s global framework.

ELITechGroup, with its primary focus on molecular diagnostics, reported revenues of approximately €150 million in 2023. This figure underscores the significant market presence of ELITech, with a notable portion of revenues deriving from non-COVID-related diagnostics, which have seen double-digit CAGR growth since pre-COVID times. The acquisition is structured to be funded through Bruker’s cash reserves and established debt financing, indicating Bruker’s financial preparedness and strategic commitment to this transaction.

The acquisition of ELITechGroup by Bruker Corporation represents a strategic maneuver to bolster Bruker’s standing in the diagnostics sector. By integrating ELITech’s advanced MDx technologies and extensive assay portfolio, Bruker is poised to offer a more diversified and competitive suite of diagnostic solutions. This move is particularly timely, given the growing demand for efficient and comprehensive diagnostic platforms in the face of global health challenges.

The transaction not only signifies Bruker’s ambition to expand its diagnostics capabilities but also demonstrates the company’s commitment to innovation and excellence in healthcare solutions. As the integration process unfolds, the industry will closely watch the potential for new developments and the realization of the synergies outlined by both companies.