Quidel to acquire in vitro diagnostics company Ortho Clinical Diagnostics
Quidel Corporation, a manufacturer of diagnostic healthcare products, has agreed to acquire Ortho Clinical Diagnostics, a New Jersey-based in vitro diagnostics company, in a deal worth about $6 billion.
As per the terms of the deal, announced on 23 December 2021, the California-based Quidel will pay $24.68 per share to the shareholders of Ortho Clinical Diagnostics. The consideration includes $7.14 in cash and 0.1055 shares of the combined company, which will give shareholders of Ortho Clinical Diagnostics nearly 38% stake.
The cash component of the deal is worth $1.75 billion.
The combined entity will also assume Ortho Clinical Diagnostics’ current net debt of $2 billion.
Chris Smith — Chairman and CEO of Ortho Clinical Diagnostics said: “Quidel shares our commitment to customers and passion for the patients we serve. By bringing together Quidel’s point-of-care diagnostics with Ortho’s vast global reach, there is a substantial opportunity to capitalize on the cross-selling opportunities, move into attractive adjacent markets, and accelerate innovative product expansion and the development of molecular technologies.
“Together, we will continue to advance life-changing diagnostic solutions to improve patient outcomes and deliver economic benefits to the healthcare system.”
According to the parties, the combined firm will bring together world-class technologies and platforms and wider access to clinical chemistry, molecular diagnostics, immunoassay, donor screening, immunohematology, and point-of-care diagnostics offerings.
Furthermore, it is expected to be able to meet the patient testing requirements at all points of the care continuum, covering reference labs, physicians’ offices, hospitals, urgent care centers, as well as at-home or retail locations.
Douglas Bryant — President and CEO of Quidel said: “The combination with Ortho will help solidify Quidel as a leader in the diagnostics industry, bringing together innovative, complementary products, solutions, and services that enhance the health and well-being of patients across the globe.
“Establishing a stronger leadership position, we expect the combined company will emerge as a global player with top-tier R&D capabilities, a more diverse product pipeline, and broader geographic footprint. Importantly, our complementary cultures are underpinned by a commitment to our customers, patients, and the communities we serve, reinforcing our confidence in the long-term value creation of this transaction.”
Douglas Bryant will be the chairman and CEO of the combined entity.
Subject to approval by both the firms’ shareholders, the meeting of customary closing conditions, and receipt of regulatory approvals, the deal is expected to be wrapped up during the first half of the fiscal year 2022.