Thermo Fisher Scientific Seeks to Acquire Qiagen in $12B Deal

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by Christopher Hamman · 3 min read
Thermo Fisher Scientific Seeks to Acquire Qiagen in $12B Deal
Photo: Thermo Fisher Scientific

Thermo Fisher launched an $11.59 billion bid for genetic testing company Qiagen NV. This acquisition may create a powerhouse that could be the next big thing in the biomedical field.

Thermo Fisher Scientific Inc. (NYSE: TMO) seems set to acquire Qiagen NV (NYSE: QGEN). The deal is reportedly worth about $11.59 billion. With its headquarters in the Netherlands, Qiagen runs operations from Germany. Sources indicate that the deal is expected to be rounded up as early as this week. After talks didn’t pull through last year, many people had wondered if another round of talks will work this time. It appears that it has. Thermo Fisher, on the other hand, is headquartered in the United States.

This acquisition may create a powerhouse that could be the next big thing in the biomedical field. Thermo Fisher Inc is one of the largest service providers for the biomedical sector, Qiagen is popularly known for its products that enable advanced blood testing. 

A combination of thee two on the same team produces a corporate giant that can provide the necessary tools and supplies to emerging situations. Qiagen’s recent delivery of a fast-acting test kit for COVID-19 is one such example. This synergy will have ample resources to tackle the many problems that have proven to be a problem for humanity on a general basis. 

Thermo Fisher Scientific Makes a Great Offer

The details of the proposed acquisition are still sketchy. Few details gleaned however provide the much-needed insight. A 23% premium raised the share offer to 39 euros per share. 

 Qiagen’s valuation stood at 10 billion Euros ($11.5 billion). A debt of about 1.26 billion Euros was also a part of the offer. 

Investors in the markets have realized this too. Qiagen’s shares rose from 18% to 37.5 Euros. This could produce the best daily gain in a long time. Thermo Fisher Inc also responded positively to the news. The CEO Marc Casper said in a statement: 

“This acquisition provides us with the opportunity to leverage our industry-leading capabilities and R&D expertise to accelerate innovation and address emerging healthcare needs.”

Markets Respond Positively

Sources indicate that Thermo Fisher’s shares rose by 1.7% as well. This raises the bar for the bio-medical sector as emergencies seem to be a driver of growth and innovation for it. We all need a doctor when we fall sick. Scaling that scenario up brings all kinds of possibilities to mind.

It could also make the healthcare sector to be one of the hottest stock buys this year. This comes as Thermo Fisher is seeking to pull off its biggest-ever deal. The last deal of this kind took place in 2014. 

Thermo Fisher acquired Life Technologies Corp. for $13.6 billion. It also comes as a surprise to many investors in the healthcare sector. Qiagen had last year indicated that it would stand down after lackluster proposal for acquisition had dampened everyone’s enthusiasm.

Whatever its worth, both parties may have good reason to smile if they get to agree on terms ad conditions of the sale. At the time of filing this report, Thermo Fisher Sceintific Inc (TMO) stock prices stood at $314.85. This is a 3.24% rise since the last active trading session. Qiagen NV (NYSE QGEN) stock prices stood at $41.38. This is a 14.56% increase since the last trading session.

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