Thermo Fisher Scientific is set to acquire Olink Holding AB for $3.1 billion, strengthening its presence in the life sciences sector. The deal has significantly boosted Olink’s U.S.-listed shares, with a nearly 67 percent increase in early trading, while Thermo Fisher’s shares experienced a slight drop of just over 1 percent.
Thermo Fisher has been grappling with decreased demand for its life sciences products, which include drug and vaccine discovery. This is due to challenges faced by its biotech clients as they navigate a funding shortage.
Olink, headquartered in Sweden, specializes in products and services for the advanced analysis of disease-linked proteins, a vital aspect of drug discovery and development.
The acquisition of Olink will enhance Thermo Fisher’s ability to assist biotech industry customers in accelerating their research and scientific achievements. CEO Marc Casper expressed enthusiasm for the acquisition’s potential to drive innovation.
The deal incorporates a net cash component of around $143 million. Thermo Fisher will pay Olink shareholders $26 per share, representing an impressive 74 percent premium over the U.S.-listed stock’s closing price on Monday.
Thermo Fisher intends to finance the transaction using a combination of cash reserves and debt financing, with plans for completion by mid-2024.
Industry analysts view this deal as strategically sound for Thermo Fisher, positioning them for substantial growth. Olink is expected to generate over $200 million in revenue next year and is projected to achieve mid-teens organic growth as part of the Thermo Fisher family.