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Bruker (BRKR) Inks Definitive Agreement to Acquire ELITechGroup
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Bruker Corporation (BRKR - Free Report) recently entered into a definitive share purchase agreement with TecFin S.à r.l., a controlled affiliate of the pre-eminent private equity firm PAI Partners, to acquire ELITechGroup. However, the €870 million cash transaction excludes the carved-out ELITech clinical chemistry business.
The transaction is expected to close in the second quarter of 2024, subject to regulatory approvals, the carve-out of the clinical chemistry business and other customary closing conditions. Upon closing, ELITech is expected to be a stand-alone business within Bruker’s Microbiology and Infection Diagnostics division as part of the Bruker CALID Group.
More on ELITechGroup
With more than 500 employees and more than 40 active patents, ELITechGroup develops and commercializes innovative, proprietary molecular diagnostic (MDx) systems and assays, as well as niche biomedical systems and microbiology products. Its molecular diagnostic business accounts for the majority of the to-be-acquired revenues and provides the unique sample-to-answer (S2A) instruments — InGenius and BeGenius — in the mid-to-high throughput MDx category.
Both offer a broad and differentiated menu of esoteric and mainstream PCR diagnostic assays for infections that are transplant-incurred, sexually transmitted, respiratory, gastrointestinal, blood-borne, hospital-acquired and more. ELITechGroup’s biomedical systems and microbiology businesses include automated slide stainers, cystic fibrosis sweat testing instruments, osmometer instruments, and selected microbiology consumables and assays.
News in Detail
Through the acquisition of the ELITech MDx business, Bruker will gain access to modern S2A systems and a broad infectious disease assay portfolio, including viral testing. ELITech’s breadth of the testing menu, ease of use and fast time to result complement Bruker’s novel LiquidArray syndromic panels, specialty fungal infection, tuberculosis, mycobacteria and HIV MDx portfolio.
Image Source: Zacks Investment Research
In addition, the ELITech esoteric molecular diagnostics portfolio complements Bruker’s MALDI Biotyper microbial identification platform in infectious disease diagnostics. Together, both establish Bruker as an innovative and growing Tier 2 infectious disease specialist in the in-vitro diagnostics (IVD) market.
Bruker previously entered into a put option agreement with the sellers, pending workers’ council consultations in France and The Netherlands. This put option has now been exercised, binding the parties to the share purchase agreement. Excluding the clinical chemistry business, ELITechGroup achieved nearly €150 million in revenues in 2023, including about €5 million in COVID-19-related MDx revenues, while non-COVID-19-related revenues have grown at a double-digit CAGR from pre-COVID-19 times through 2023.
ELITech generates most of its revenues in Europe, with significant businesses in North and Latin America. Its major R&D and operations sites are in Italy, the United States, France and Germany. Further, the financial details of the transaction will be provided after the transaction closes.
Industry Prospects
Per a research report, the global IVD market was valued at $117.8 billion in 2022 and is expected to witness a CAGR of 3.3% by 2027.
Developments in the BSI CALID Segment
In February 2024, Bruker’s Optics division strengthened its molecular microscopy portfolio with the acquisition of Nanophoton Corporation. The Japanese technology leader offers a broad portfolio of advanced Raman microscopes, serving academic and industrial research customers primarily in the country. Through this deal, Bruker looks forward to offering fast, flexible and sensitive Nanophoton Raman microscopy systems worldwide for research and development in the life sciences, biopharma, advanced materials, semiconductors and polymers.
Price Performance
In the past six months, shares of BRKR have increased 31% compared with the industry’s rise of 13.1%.
Cardinal Health’s stock has risen 49.9% in the past year. Earnings estimates for CAH have increased from $6.91 to $7.28 in fiscal 2024 and from $7.76 to $8.03 in fiscal 2025 in the past 30 days.
CAH’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 15.6%. In the last reported quarter, it posted an earnings surprise of 16.7%.
Estimates for Insulet’s 2024 earnings per share have increased from $2.54 to $3.03 in the past 30 days. Shares of the company have decreased 42% in the past year against the industry’s growth of 11.7%.
PODD’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 100.1%. In the last reported quarter, it delivered an average earnings surprise of 108.9%.
Estimates for DaVita’s 2024 earnings per share have advanced from $8.46 to $8.97 in the past 30 days. Shares of the company have risen 56.7% in the past year compared with the industry’s growth of 18.1%.
DVA’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 35.6%. In the last reported quarter, it delivered an average earnings surprise of 22.2%.
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Bruker (BRKR) Inks Definitive Agreement to Acquire ELITechGroup
Bruker Corporation (BRKR - Free Report) recently entered into a definitive share purchase agreement with TecFin S.à r.l., a controlled affiliate of the pre-eminent private equity firm PAI Partners, to acquire ELITechGroup. However, the €870 million cash transaction excludes the carved-out ELITech clinical chemistry business.
The transaction is expected to close in the second quarter of 2024, subject to regulatory approvals, the carve-out of the clinical chemistry business and other customary closing conditions. Upon closing, ELITech is expected to be a stand-alone business within Bruker’s Microbiology and Infection Diagnostics division as part of the Bruker CALID Group.
More on ELITechGroup
With more than 500 employees and more than 40 active patents, ELITechGroup develops and commercializes innovative, proprietary molecular diagnostic (MDx) systems and assays, as well as niche biomedical systems and microbiology products. Its molecular diagnostic business accounts for the majority of the to-be-acquired revenues and provides the unique sample-to-answer (S2A) instruments — InGenius and BeGenius — in the mid-to-high throughput MDx category.
Both offer a broad and differentiated menu of esoteric and mainstream PCR diagnostic assays for infections that are transplant-incurred, sexually transmitted, respiratory, gastrointestinal, blood-borne, hospital-acquired and more. ELITechGroup’s biomedical systems and microbiology businesses include automated slide stainers, cystic fibrosis sweat testing instruments, osmometer instruments, and selected microbiology consumables and assays.
News in Detail
Through the acquisition of the ELITech MDx business, Bruker will gain access to modern S2A systems and a broad infectious disease assay portfolio, including viral testing. ELITech’s breadth of the testing menu, ease of use and fast time to result complement Bruker’s novel LiquidArray syndromic panels, specialty fungal infection, tuberculosis, mycobacteria and HIV MDx portfolio.
Image Source: Zacks Investment Research
In addition, the ELITech esoteric molecular diagnostics portfolio complements Bruker’s MALDI Biotyper microbial identification platform in infectious disease diagnostics. Together, both establish Bruker as an innovative and growing Tier 2 infectious disease specialist in the in-vitro diagnostics (IVD) market.
Bruker previously entered into a put option agreement with the sellers, pending workers’ council consultations in France and The Netherlands. This put option has now been exercised, binding the parties to the share purchase agreement. Excluding the clinical chemistry business, ELITechGroup achieved nearly €150 million in revenues in 2023, including about €5 million in COVID-19-related MDx revenues, while non-COVID-19-related revenues have grown at a double-digit CAGR from pre-COVID-19 times through 2023.
ELITech generates most of its revenues in Europe, with significant businesses in North and Latin America. Its major R&D and operations sites are in Italy, the United States, France and Germany. Further, the financial details of the transaction will be provided after the transaction closes.
Industry Prospects
Per a research report, the global IVD market was valued at $117.8 billion in 2022 and is expected to witness a CAGR of 3.3% by 2027.
Developments in the BSI CALID Segment
In February 2024, Bruker’s Optics division strengthened its molecular microscopy portfolio with the acquisition of Nanophoton Corporation. The Japanese technology leader offers a broad portfolio of advanced Raman microscopes, serving academic and industrial research customers primarily in the country. Through this deal, Bruker looks forward to offering fast, flexible and sensitive Nanophoton Raman microscopy systems worldwide for research and development in the life sciences, biopharma, advanced materials, semiconductors and polymers.
Price Performance
In the past six months, shares of BRKR have increased 31% compared with the industry’s rise of 13.1%.
Zacks Rank and Key Picks
Bruker carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Cardinal Health (CAH - Free Report) , Insulet (PODD - Free Report) and DaVita (DVA - Free Report) . DaVita presently sports a Zacks Rank #1 (Strong Buy), while Cardinal Health and Insulet each carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cardinal Health’s stock has risen 49.9% in the past year. Earnings estimates for CAH have increased from $6.91 to $7.28 in fiscal 2024 and from $7.76 to $8.03 in fiscal 2025 in the past 30 days.
CAH’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 15.6%. In the last reported quarter, it posted an earnings surprise of 16.7%.
Estimates for Insulet’s 2024 earnings per share have increased from $2.54 to $3.03 in the past 30 days. Shares of the company have decreased 42% in the past year against the industry’s growth of 11.7%.
PODD’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 100.1%. In the last reported quarter, it delivered an average earnings surprise of 108.9%.
Estimates for DaVita’s 2024 earnings per share have advanced from $8.46 to $8.97 in the past 30 days. Shares of the company have risen 56.7% in the past year compared with the industry’s growth of 18.1%.
DVA’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 35.6%. In the last reported quarter, it delivered an average earnings surprise of 22.2%.