M&A Report: Roche Merges with GenMark Diagnostics to Create Syndromic Testing Powerhouse
After a slow start to the year, M&A activity in the diagnostics space accelerated noticeably in March, both in terms of deal volume and impact. The highlight of the month was the March 15 announcement of Roche’s agreement to acquire GenMark Diagnostics for approximately $1.8 billion in cash. Terms of the Deal The deal will actually take the form of a merger carried out in two stages: First, Roche will initiate a tender to acquire all outstanding shares of GenMark common stock at $24.05 per share, representing a premium of approximately 43 percent to the closing price on Feb. 10, the last day of trading before published reports rumoring a GenMark acquisition, which caused share prices to skyrocket by 27 percent; and Once the first merger ends, Roche will acquire the remaining common shares at the same price via a second step merger. The deal has been unanimously approved by the boards of both companies and is slated to close in the second quarter. Strategic Significance Unlike some other recent high-profile M&A deals, there’s a strong fit between Roche and GenMark. GenMark’s portfolio of syndromic panel tests and products, including the ePlex platform, complement Roche’s own molecular diagnostics product lines. […]
After a slow start to the year, M&A activity in the diagnostics space accelerated noticeably in March, both in terms of deal volume and impact. The highlight of the month was the March 15 announcement of Roche’s agreement to acquire GenMark Diagnostics for approximately $1.8 billion in cash.
Terms of the Deal
The deal will actually take the form of a merger carried out in two stages:
- First, Roche will initiate a tender to acquire all outstanding shares of GenMark common stock at $24.05 per share, representing a premium of approximately 43 percent to the closing price on Feb. 10, the last day of trading before published reports rumoring a GenMark acquisition, which caused share prices to skyrocket by 27 percent; and
- Once the first merger ends, Roche will acquire the remaining common shares at the same price via a second step merger.
The deal has been unanimously approved by the boards of both companies and is slated to close in the second quarter.
Strategic Significance
Unlike some other recent high-profile M&A deals, there’s a strong fit between Roche and GenMark. GenMark’s portfolio of syndromic panel tests and products, including the ePlex platform, complement Roche’s own molecular diagnostics product lines. GenMark’s “proven expertise in syndromic panel testing provides faster targeted therapeutic intervention, resulting in improved patient outcomes and reduced hospital stays,” noted Roche Diagnostics CEO Thomas Schinecker in a statement, “and will contribute to Roche’s commitment to helping control infectious diseases and antibiotic resistance.” And by joining forces with a global powerhouse like Roche GenMark will be able to vastly expand its market reach.
The firms even have complementary COVID-19 products. GenMark produces Respiratory Pathogen Panels for identifying pathogens associated with SARS-CoV-2 and other upper respiratory infections while Roche offers a variety of different COVID-19 tests.
Here’s a summary of the key new M&A diagnostic deals announced in April 2021:
Mergers, Acquisitions & Asset Sales
Acquiring Company | Target(s) | Deal Summary |
---|---|---|
Roche | GenMark Diagnostics |
|
Thermo Fisher Scientific | Mesa Biotech |
|
Agilent Technologies | Resolution Bioscience |
|
Hologic | Diagenode |
|
PerkinElmer | Oxford Immunotec |
|
Insightful Science | Dotmatics |
|
DiamiR | Interpace Biosciences |
|
CareDx | BFS Molecular |
|
Veracyte | Decipher Biosciences |
|
Integrated DNA Technologies (Danaher subsidiary) | Swift Biosciences |
|
Quest Diagnostics | Mercy |
|
C2i Genomics | QNA Dx |
|
Bio-Techne | Asuragen |
|
10x Genomics | Tetramer Shop |
|
Oncocyte | Razor Genomics |
|
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