Thermo Fisher announces $3.1bn acquisition of proteomics leader Olink

In a transformative move within the life sciences domain, Thermo Fisher Scientific Inc. is set to acquire proteomics pioneer Olink Holding AB for a compelling cash deal of $26 per share, tallying to a transactional value of around $3.1 billion. This offer marks a 74% premium on Olink’s ADS (American Depositary Shares) closing price from NASDAQ on October 16, 2023.

Olink: Revolutionizing Proteomics with Advanced Solutions

Sweden-based Olink has carved a niche in pioneering solutions for advanced proteomics discovery, offering a window into understanding diseases at the protein level. The company’s Proximity Extension Assay (PEA) technology stands out, enabling high throughput protein analysis for the extensive qPCR and next-gen sequencing systems. With an expansive library of over 5,300 validated protein biomarker targets and 1,400 scientific publications to its credit, Olink’s influence spans across the Americas, Europe, and Asia Pacific.

Marc N. Casper, the CEO of Thermo Fisher, elucidated on the acquisition, “The acquisition of Olink underscores the profound impact that proteomics is having… Our company is uniquely positioned to bring this technology to customers enabling them to meaningfully accelerate discovery and scientific breakthroughs.”

Industry Shake-Up: Thermo Fisher to Buy Olink for $26 Per Share in Cash Deal. Photo courtesy of Thermo Fisher Scientific Inc.

Echoing the optimism, Jon Heimer, Olink’s CEO, emphasized, “Thermo Fisher’s deep life sciences expertise… will enable significant opportunities for both customers and colleagues, while also providing immediate value to our shareholders.”

Deal Specifics and Future Outlook

Projected to culminate by mid-2024, the transaction hinges on standard closing conditions and requisite regulatory approvals. Olink, which is poised to register revenues exceeding $200M in 2024, will be integrated into Thermo Fisher’s Life Sciences Solutions segment post-acquisition. Financial expectations post the merger indicate strong long-term business growth, with Thermo Fisher anticipating roughly $125 million of adjusted operating income from synergies by the fifth year after completion.

Advisory Roles in the Mega Acquisition

Thermo Fisher’s legal counsel for the deal comprises Cravath Swaine & Moore LLP and Advokatfirman Vinge KB. On the flip side, Olink is banking on J.P. Morgan Securities LLC as the lead financial advisor, with the added expertise of Goldman Sachs Bank Europe SE, Sweden Bankfilial, and Baker & McKenzie in legal advisement.