Thermo Fisher Drops $11.2 Billion Qiagen Bid -- Update
14 August 2020 - 3:50AM
Dow Jones News
By Colin Kellaher
Thermo Fisher Scientific Inc. on Thursday said it scrapped its
planned $11.2 billion acquisition of Qiagen NV after failing to
gain the support of the Dutch company's shareholders.
Thermo Fisher said its tender offer for Qiagen garnered about
47% of the molecular-diagnostics company's shares, missing the
two-thirds minimum acceptance condition.
As a result, Thermo Fisher said it has terminated the
acquisition agreement.
Thermo Fisher in March agreed to buy Qiagen for about $10.1
billion to bulk up in the field of infectious-disease testing, and
the Waltham, Mass., company last month raised its bid by about 10%
to reflect the rising value of Qiagen amid the coronavirus
pandemic.
Thermo Fisher at the time of the increased bid said industry
dynamics had changed considerably since the deal was initially
struck, as both companies worked to help their customers battle the
pandemic, and it said the new offer reflected the fair value of
Qiagen's business given the current environment.
But some Qiagen shareholders said the new bid of 43 euros a
share, up from an original 39 euros, wasn't enough.
Davidson Kempner Capital Management, which holds a nearly 8%
stake in Qiagen, had called the new offer "wholly inadequate" and
said it believed the Dutch company was worth EUR48 to EUR52 a
share. The New York hedge-fund manager said it wouldn't tender its
shares, and that it would urge other shareholders to reject Thermo
Fisher's offer.
Frankfurt-listed shares of Qiagen closed Thursday at EUR41, down
0.75%.
Qiagen said it respects the decision of its shareholders, and it
noted that its business prospects have improved significantly given
the magnitude and duration of the pandemic.
The company said it will move forward with its long-term growth
strategy, including the full acquisition of testing gear supplier
NeuMoDx Molecular Inc. Qiagen in late 2018 signed an agreement
giving it the right to buy the 80% of NeuMoDx it doesn't already
own for about $234 million.
Analysts at SVB Leerink said Thermo Fisher's decision to walk
away from the deal reflects the company's measured and disciplined
approach to acquisitions, and that they expect dealmaking will
remain part of Thermo Fisher's growth strategy.
"Thermo Fisher is a disciplined acquirer with a strong track
record of executing value-creating transactions," Marc Casper, the
company's chairman and chief executive, said. "We remain extremely
well-positioned to deliver on our proven growth strategy and
continue to generate significant returns for our shareholders."
The company will receive a $95 million expense-reimbursement
payment from Qiagen as a part of the termination.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
August 13, 2020 13:35 ET (17:35 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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