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Luminex (LMNX) to Get Acquired by DiaSorin for Around $1.8B
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Luminex Corporation is set to be acquired by the Italian diagnostics company DiaSorin S.p.A. for a price of $37 per share or approximately $1.8 billion in an all-cash transaction. Notably, Luminex has emerged as a leader in multiplexing technology — one of the fastest growing markets in the molecular space — with above 900 clients.
From DiaSorin’s standpoint, the buyout will expand its foothold in molecular diagnostics space courtesy of Luminex’s molecular diagnostics multiplexing technology and a portfolio that will aid DiaSorin in fortifying its existing offerings while broadening its presence in the United States.
Transaction Details in Brief
Per the deal, Luminex will get merged with DiaSorin’s newly formed U.S. subsidiary, with the former’s shareholders receiving $37 in cash for each of their shares. It is worth mentioning that the transaction will be funded through a mix of cash and external financing.
Notably, the buyout is anticipated to conclude within the third quarter of 2021, subject to Luminex shareholder approval and other customary closing conditions.
The coming together of these two companies is projected to result in cost synergies of around $55 million within three years post completion.
Significance of the Buyout
The transaction will enable Luminex to enhance the value received by its customers via an expanded global product and service portfolio. Per management, the deal reflects the goodwill that Luminex has cultivated in the marketplace along with the great value of its shares.
On the back of DiaSorin’s extensive and geographical reach, Luminex is likely to accelerate its technology and solutions’ presence outside the United States. In fact, backed by DiaSorin’s leadership position, Luminex will be able to generate additional and sustainable long-term growth.
Market Prospects
Per a report published on Grand View Research, the global molecular diagnostics market was valued at $9.2 billion in 2019 and is expected to reach $18.2 billion by 2027, witnessing a CAGR of 9% between 2020 and 2027. Factors like technological advancements in molecular diagnostics and the rising prevalence of infectious diseases are likely to drive the market.
Recent Developments
Last month, Luminex submitted an Emergency Use Authorization application (EUA) to the FDA for the company's new multi-analyte respiratory panel pairing Flu A/B and respiratory syncytial virus (RSV) targets with the SARS-CoV-2 target. This development is likely to boost Luminex’s molecular diagnostics platform and strengthen presence in the global infectious disease diagnostics market.
In the same month, the company received EUA from the FDA for a new expanded version of its NxTAG Respiratory Pathogen Panel (RPP), which includes the SARS-CoV-2 virus for high-throughput respiratory testing. The new test combines the company's original NxTAG RPP, which is a FDA-cleared in vitro diagnostic for syndromic respiratory infection testing, and SARS-CoV-2.
Price Performance
Shares of the Zacks Rank #3 (Hold) company have gained 60.1% on a year-to-date basis, against the industry’s decline of 1.7%.
AmerisourceBergen’s long-term earnings growth rate is expected at 11.4%.
DENTSPLY SIRONA’s long-term earnings growth rate is estimated at 20%.
Cantel Medical’s long-term earnings growth rate is estimated at 19%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Luminex (LMNX) to Get Acquired by DiaSorin for Around $1.8B
Luminex Corporation is set to be acquired by the Italian diagnostics company DiaSorin S.p.A. for a price of $37 per share or approximately $1.8 billion in an all-cash transaction. Notably, Luminex has emerged as a leader in multiplexing technology — one of the fastest growing markets in the molecular space — with above 900 clients.
From DiaSorin’s standpoint, the buyout will expand its foothold in molecular diagnostics space courtesy of Luminex’s molecular diagnostics multiplexing technology and a portfolio that will aid DiaSorin in fortifying its existing offerings while broadening its presence in the United States.
Transaction Details in Brief
Per the deal, Luminex will get merged with DiaSorin’s newly formed U.S. subsidiary, with the former’s shareholders receiving $37 in cash for each of their shares. It is worth mentioning that the transaction will be funded through a mix of cash and external financing.
Notably, the buyout is anticipated to conclude within the third quarter of 2021, subject to Luminex shareholder approval and other customary closing conditions.
The coming together of these two companies is projected to result in cost synergies of around $55 million within three years post completion.
Significance of the Buyout
The transaction will enable Luminex to enhance the value received by its customers via an expanded global product and service portfolio. Per management, the deal reflects the goodwill that Luminex has cultivated in the marketplace along with the great value of its shares.
On the back of DiaSorin’s extensive and geographical reach, Luminex is likely to accelerate its technology and solutions’ presence outside the United States. In fact, backed by DiaSorin’s leadership position, Luminex will be able to generate additional and sustainable long-term growth.
Market Prospects
Per a report published on Grand View Research, the global molecular diagnostics market was valued at $9.2 billion in 2019 and is expected to reach $18.2 billion by 2027, witnessing a CAGR of 9% between 2020 and 2027. Factors like technological advancements in molecular diagnostics and the rising prevalence of infectious diseases are likely to drive the market.
Recent Developments
Last month, Luminex submitted an Emergency Use Authorization application (EUA) to the FDA for the company's new multi-analyte respiratory panel pairing Flu A/B and respiratory syncytial virus (RSV) targets with the SARS-CoV-2 target. This development is likely to boost Luminex’s molecular diagnostics platform and strengthen presence in the global infectious disease diagnostics market.
In the same month, the company received EUA from the FDA for a new expanded version of its NxTAG Respiratory Pathogen Panel (RPP), which includes the SARS-CoV-2 virus for high-throughput respiratory testing. The new test combines the company's original NxTAG RPP, which is a FDA-cleared in vitro diagnostic for syndromic respiratory infection testing, and SARS-CoV-2.
Price Performance
Shares of the Zacks Rank #3 (Hold) company have gained 60.1% on a year-to-date basis, against the industry’s decline of 1.7%.
Stocks to Consider
Some better-ranked stocks from the broader medical space are AmerisourceBergen Corporation , DENTSPLY SIRONA Inc. (XRAY - Free Report) and Cantel Medical Corp. , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AmerisourceBergen’s long-term earnings growth rate is expected at 11.4%.
DENTSPLY SIRONA’s long-term earnings growth rate is estimated at 20%.
Cantel Medical’s long-term earnings growth rate is estimated at 19%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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