Thermo Fisher Scientific to Acquire Olink Holding in $3.1B Deal

Thermo Fisher Scientific, a leading scientific instrument maker, has announced its plans to acquire Olink Holding, a proteomics company, in a significant $3.1 billion deal. This acquisition highlights the growing impact of proteomics in advancing life science research and precision medicine.

Strengthening Scientific Advancements

Proteomics, the study of proteins and their cellular activities, plays a vital role in understanding the interactions, composition, function, and structures of these essential molecules. Thermo Fisher's CEO, Marc N. Casper, recognizes the profound impact that proteomics has on scientific advancements and its contribution to the field of precision medicine.

Transaction Details and Benefits

Thermo Fisher will purchase Sweden's Olink for $26 per American depositary share in cash. This offer represents an impressive 74% premium from the closing price of Olink's U.S.-listed stock on Monday. As part of the deal, Thermo Fisher plans to fund the acquisition using cash reserves and debt financing.

Although the acquisition is expected to be dilutive to adjusted earnings by 17 cents per share in the first year of ownership, Thermo Fisher anticipates approximately $125 million of adjusted operating income from revenue and cost synergies within the fifth year of the transaction.

Expected Timeline

The acquisition is set to be finalized in mid-2024, subject to necessary approvals and regulatory requirements.

Market Response

Thermo Fisher's shares experienced a slight decline of 1% in premarket trading, currently valued at $483.90 per share. It is worth noting that the stock has seen an 11% drop since the beginning of this year.