PerkinElmer (NYSE:PKI) and Oxford Immunotec announced today that they agreed to terms under which the former will acquire the latter.
Under the agreement, London-based Oxford Immunotec’s shareholders will be entitled to receive $22 for each outstanding ordinary share, with the terms of the acquisition valuing Oxford Immunotec’s entire issued and to-be-issued ordinary share capital at $591 million, according to a news release.
The terms of the acquisition represent a premium of approximately 28.3% to the closing price of $17.15 per share on Jan. 5, 2021 and 53.5% to the 90-trading-day volume-weighted average of $14.34 during the period of Oct. 8, 2020, to Jan. 5, 2021.
Waltham, Mass.-based PerkinElmer expects the acquisition to help grow its portfolio of advanced infectious disease testing solutions to include tuberculosis detection while enabling the company to combine its channel expertise and workflow and testing capabilities with Oxford Immunotec’s capabilities in the space of T-cell immunology.
The company expects the acquisition of Oxford Immunotec to be “modestly accretive” to its non-GAAP earnings in the first year after close, with expectations that Oxford Immunotec’s sales growth will exceed that of its diagnostics franchise for the foreseeable future.
“Tuberculosis remains one of the leading infectious causes of death, with close to one quarter of the world’s population infected,” PerkinElmer president & CEO Prahlad Singh said in the release. “We believe Oxford Immunotec’s diagnostic testing solution plays an important role in slowing the spread and saving lives. Oxford Immunotec’s highly sensitive test and their team’s passion for solving complex health issues make it a natural fit with PerkinElmer’s mission and together, we believe will accelerate development of robust solutions to help detect infectious disease.”
“We are delighted to be joining the PerkinElmer family,” added Oxford Immunotec CEO Peter Wrighton-Smith. “We believe this transaction is great for our shareholders, our employees and our customers. Access to PerkinElmer’s global reach and automation experience will enable us to accelerate our growth journey and make a growing impact in the field of infectious disease.”