PerkinElmer has agreed to buy German medical laboratory diagnostics firm Euroimmun Medical Laboratory Diagnostics for approximately $1.3 billion in cash. PerkinElmer says the acquisition will expand its reach in the autoimmune and allergy diagnostic sector, provide new infectious disease tests for the Chinese market, and add Euroimmun’s capabilities in reproductive health to its existing market-leading U.S. reproductive health portfolio.
Euroimmun is projected to generate approximately $310 million in revenues this year, according to PerkinElmer. The Lübeck-based firm is a recognized leader in autoimmune testing, with a growing presence in infectious disease and allergy testing. Euroimmun has 2400 employees and achieved sales in more than 130 countries in 2016, with 45% of revenues generated in China, 30% in Europe, the Middle East and Africa, and 5% in the Americas, and 20% in rest of world.
Commenting on its deal to acquire Euroimmun, Robert Friel, chairman and CEO at PerkinElmer, said, “With the acquisition of Euroimmun and its talented team of professionals, we are able to leverage our combined advanced detection, imaging, and assay development capabilities, along with our strong collective market positions and synergistic commercial activities, to deliver better and more complete solutions to our customers around the world.”
The transaction is expected to close during Q4 2017, subject to customary closing conditions and regulatory approval. PerkinElmer projects the acquisition to be accretive to its 2018 non-GAAP earnings per share by approximately $0.28 to $0.30.
PerkinElmer reported GAAP revenues of $514 million in the first quarter of 2017, up 3% on Q1 2016. Diagnostics revenues were up 8%, to $152.4 million, and revenues from discovery and analytical solutions were up 1% at $361.8 million.