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PerkinElmer (PKI) to Boost Immunodiagnostics Unit With Buyout
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PerkinElmer, Inc. inked a deal with Immunodiagnostics Systems Holdings PLC (“IDS”), wherein the former will acquire the latter for about $155 million. Notably, the transaction has a total value of around $124 million and is anticipated to conclude early in the third quarter of 2021, subject to necessary sanctions, approvals and customary conditions.
It is worth mentioning that IDS, headquartered in Boldon, the U.K., is a leading in-vitro diagnostic solution provider to the clinical laboratory market. The company’s immunoassay portfolio boasts a combination of an endocrinology specialty testing menu and assay panels in complementary fields.
The buyout will help in the overall growth of PerkinElmer’s Diagnostics’ business, especially its immunodiagnostics segment.
Financial Impact
PerkinElmer projects the buyout to be moderately accretive to adjusted earnings in the first year following completion. Moreover, per PerkinElmer’s estimate, IDS’s business is likely to be well-positioned in markets, which are expected to grow at a compound annual growth rate of high-single digits over the next few years.
Deal Rationale
The buyout will allow PerkinElmer to combine its channel expertise and testing capabilities with IDS’s excellent quality chemiluminescence products in endocrinology, autoimmunity and infectious diseases, thereby enabling the former to better serve customers globally.
Through this transaction, IDS’s portfolio and experience will get integrated with EUROIMMUN (a PerkinElmer company) smoothly. Per management of EUROIMMUN, this proposed deal is highly valuable for both the companies since the respective product lines are complementary to a great extent.
Market Prospects
Per a report by Research and Markets, global immunodiagnostics market is anticipated to grow by $11.71 billion, at a CAGR of 11% during the forecast period (2020-2024). Hence, this buyout comes at an opportune time.
Other Notable Buyouts
In May 2021, PerkinElmer 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. 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.
In March, the company 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.
Price Performance
Shares of the company have gained 53% in the past year compared with the industry’s rally of 63.1%.
Zacks Rank & Key Picks
Currently, PerkinElmer carries a Zacks Rank #3 (Hold).
HCA Healthcare’s long-term earnings growth rate is expected at 12.3%.
DaVita’s long-term earnings growth rate is estimated at 14.4%.
Amedisys’ long-term earnings growth rate is estimated at 12%.
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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PerkinElmer (PKI) to Boost Immunodiagnostics Unit With Buyout
PerkinElmer, Inc. inked a deal with Immunodiagnostics Systems Holdings PLC (“IDS”), wherein the former will acquire the latter for about $155 million. Notably, the transaction has a total value of around $124 million and is anticipated to conclude early in the third quarter of 2021, subject to necessary sanctions, approvals and customary conditions.
It is worth mentioning that IDS, headquartered in Boldon, the U.K., is a leading in-vitro diagnostic solution provider to the clinical laboratory market. The company’s immunoassay portfolio boasts a combination of an endocrinology specialty testing menu and assay panels in complementary fields.
The buyout will help in the overall growth of PerkinElmer’s Diagnostics’ business, especially its immunodiagnostics segment.
Financial Impact
PerkinElmer projects the buyout to be moderately accretive to adjusted earnings in the first year following completion. Moreover, per PerkinElmer’s estimate, IDS’s business is likely to be well-positioned in markets, which are expected to grow at a compound annual growth rate of high-single digits over the next few years.
Deal Rationale
The buyout will allow PerkinElmer to combine its channel expertise and testing capabilities with IDS’s excellent quality chemiluminescence products in endocrinology, autoimmunity and infectious diseases, thereby enabling the former to better serve customers globally.
Through this transaction, IDS’s portfolio and experience will get integrated with EUROIMMUN (a PerkinElmer company) smoothly. Per management of EUROIMMUN, this proposed deal is highly valuable for both the companies since the respective product lines are complementary to a great extent.
Market Prospects
Per a report by Research and Markets, global immunodiagnostics market is anticipated to grow by $11.71 billion, at a CAGR of 11% during the forecast period (2020-2024). Hence, this buyout comes at an opportune time.
Other Notable Buyouts
In May 2021, PerkinElmer 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. 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.
In March, the company 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.
Price Performance
Shares of the company have gained 53% in the past year compared with the industry’s rally of 63.1%.
Zacks Rank & Key Picks
Currently, PerkinElmer carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are HCA Healthcare, Inc. (HCA - Free Report) , DaVita Inc. (DVA - Free Report) and Amedisys, Inc. (AMED - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
HCA Healthcare’s long-term earnings growth rate is expected at 12.3%.
DaVita’s long-term earnings growth rate is estimated at 14.4%.
Amedisys’ long-term earnings growth rate is estimated at 12%.
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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