Thermo Fisher Scientific to Acquire Olink Holding AB in $3.1 Billion Deal
October 17, 2023 – Thermo Fisher Scientific, a leading U.S. medical equipment maker, announced on Tuesday that it will acquire Olink Holding AB in a deal valued at $3.1 billion. The acquisition aims to expand Thermo Fisher’s life sciences portfolio and enhance its capabilities in drug discovery.
Shares of Olink Holding AB, a Sweden-based company that provides products and services for protein analysis, surged by nearly 67% in early trading following the announcement. On the other hand, Thermo Fisher’s shares experienced a slight drop of over 1%.
Thermo Fisher has faced challenges due to softening demand for its life sciences offerings, particularly as its biotech clients are experiencing a funding crunch. With the acquisition of Olink Holding AB, Thermo Fisher aims to address these challenges and strengthen its position in the industry.
Olink Holding AB specializes in advanced analysis of proteins, which are crucial indicators of various diseases. The company’s technologies and services play a significant role in drug discovery and development.
According to Thermo Fisher CEO Marc Casper, the acquisition of Olink Holding AB will enable the company’s customers in the biotech industry to accelerate their discovery processes and achieve scientific breakthroughs.
The deal also includes a net cash component of approximately $143 million. Olink shareholders will receive $26 per share, representing a premium of about 74% to the U.S.-listed stock’s closing price on Monday.
Thermo Fisher plans to fund the transaction using its existing cash reserves and debt financing. The company expects the deal to be finalized by mid-2024.
Analyst Vijay Kumar from Evercore ISI described the acquisition as a strategic fit for Thermo Fisher, stating that it aligns with the company’s goals. Olink Holding AB is projected to generate over $200 million in revenue next year and is expected to grow organically at a mid-teens rate as part of Thermo Fisher.
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