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PerkinElmer (PKI) Boosts Cell Biology Portfolio With Buyout

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PerkinElmer, Inc. (PKI - Free Report) recently inked a deal to acquire Nexcelom Bioscience for an amount of $260 million in cash. Notably, Nexcelom is a Lawrence, MA-based developer and marketer of image cytometry products used for cell analysis in life science research and drug discovery. The company is also involved in development and manufacturing of the same. Additionally, it is privately-held and founder-led with around 130 employees globally based in the United States, the U.K. and China. In 2021, Nexcelom’s projected revenues are around $40 million.

Notably, the buyout is anticipated to get completed during the second quarter of 2021.

With this transaction, PerkinElmer is likely to boost its Diagnostics segment. Also, the acquisition (once completed) is likely to pave the way for new niches in high-growth areas where substantial opportunity can be seen in the near future.

Deal Rationale

By bringing both these companies together, PerkinElmer will be able to expand its efforts to help academic, government and biopharmaceutical organizations in simplifying their complete workflows and lend support to efforts to advance time to target and time to market for novel therapies.

Per management, PerkinElmer is optimistic about adding Nexcelom’s experience and technologies in drug development to its passion and solutions for drug discovery.

Market Prospects

Per a report by Research and Markets, the global biologics market was valued at $254.9 billion in 2017 and is anticipated to reach $580.5 billion by 2026 at a CAGR of 9.5% during the forecast period of 2018-2026. Hence, this deal is well-timed.

Another Notable Buyout

In March 2021, PerkinElmer completed the buyout of Oxford Immunotec Global Plc that will enable the former to expand its portfolio of advanced infectious disease testing solutions by including tuberculosis detection product line. Moreover, the deal will enable PerkinElmer to merge its channel expertise and testing capabilities with Oxford Immunotec’s T Cell immunology with its proprietary test kits for latent tuberculosis.

Some other companies in the medical space that have been involved in boosting their inorganic portfolios in recent times are AMN Healthcare Services Inc. (AMN - Free Report) , Luminex Corporation and Cardinal Health, Inc. (CAH - Free Report) .

In May 2021, AMN Healthcare announced that it is foraying into the post-acute care market with the buyout of the telehealth company Synzi for $42 million in cash. It is important to note here that the transaction was completed in April.

In April, Luminex announced that it 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. 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. The transaction will enable Luminex to enhance the value received by its customers via an expanded global product and service portfolio.

In March, Cardinal Health inked a deal to divest its Cordis business to Hellman & Friedman (H&F) for an amount of around $1 billion. Notably, the transaction is anticipated to be completed in the first half of Cardinal Health’s fiscal year 2022, subject to regulatory clearances and mandatory closing conditions. The divestiture will enable Cardinal Health to evaluate portfolio and focus resources on strategic growth areas where it remains in an advantageous position.

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