PerkinElmer to acquire Oxford Immunotec for $591m to expand tuberculosis testing capabilities

In a significant move within the diagnostics sector, US-based PerkinElmer has announced its agreement to acquire UK-based Oxford Immunotec for $591 million, translating to $22 per share. This acquisition marks an important step in PerkinElmer’s strategy to expand its infectious disease testing portfolio, particularly in the area of tuberculosis detection. Oxford Immunotec, known for its advanced diagnostic solutions for latent tuberculosis, will now become part of PerkinElmer’s expansive diagnostics portfolio, which already includes immunodiagnostics, reproductive health, and applied genomics.

Oxford Immunotec’s expertise lies in its Interferon Gamma Release Assay (IGRA), a diagnostic test widely used for detecting tuberculosis. With tuberculosis continuing to be one of the most deadly infectious diseases globally, the addition of Oxford Immunotec’s diagnostic capabilities will allow PerkinElmer to offer a more comprehensive range of testing solutions aimed at combating infectious diseases.

Strategic integration of expertise and capabilities

The acquisition is expected to help PerkinElmer enhance its diagnostic offerings by combining its existing expertise in immunodiagnostics and workflow solutions with Oxford Immunotec’s proficiency in T cell immunology. This merger is seen as an opportunity to integrate two strong areas of knowledge—PerkinElmer’s diagnostic capabilities and Oxford Immunotec’s specialized tests for tuberculosis.

Prahlad Singh, President and CEO of PerkinElmer, emphasized the importance of the acquisition in combating tuberculosis, noting that the disease remains a leading infectious cause of death, with a quarter of the world’s population infected. Singh highlighted that Oxford Immunotec’s test solutions will play a pivotal role in detecting latent tuberculosis and curbing its spread, aligning with PerkinElmer’s broader mission of developing advanced infectious disease testing solutions. Singh’s vision for the future underscores the importance of accelerating the development of reliable solutions for global health threats.

Peter Wrighton-Smith, CEO of Oxford Immunotec, also voiced his support for the deal, stating that the acquisition would provide Oxford Immunotec with access to PerkinElmer’s global infrastructure and automation expertise. Wrighton-Smith expressed confidence that the collaboration would allow Oxford Immunotec to expand its reach, improve its diagnostic testing solutions, and contribute more significantly to the fight against infectious diseases. The acquisition is expected to lead to accelerated growth for both companies, benefitting shareholders, employees, and the global health community.

Expected timeline and closing conditions

The deal, which is subject to approval by Oxford Immunotec’s shareholders and customary regulatory conditions, is expected to close in the first half of the year. Once finalized, the merger will likely strengthen PerkinElmer’s position in the diagnostics industry, particularly in the field of tuberculosis and other infectious diseases.

This acquisition is not PerkinElmer’s first strategic expansion. In late 2020, the company acquired Horizon Discovery Group, a UK-based cell engineering firm, for $383 million. This earlier acquisition was aimed at enhancing PerkinElmer’s capabilities in automated life sciences discovery and applied genomics solutions, including gene editing and modulation tools.

A pivotal moment for PerkinElmer’s growth

The acquisition of Oxford Immunotec further solidifies PerkinElmer’s position as a leader in the diagnostics space, particularly in the battle against infectious diseases like tuberculosis. With both companies bringing complementary expertise and technologies to the table, the deal has the potential to accelerate the development of new diagnostic solutions, improving global health outcomes. As the deal moves toward completion, the healthcare industry will be closely watching the merger’s impact on the diagnostics market and its role in combating some of the world’s most pressing health challenges.