(Bloomberg) -- U.S. laboratory equipment maker Thermo Fisher Scientific Inc. raised its takeover offer for Qiagen NV, a Dutch maker of tests for diseases including cancer and the new coronavirus, after some shareholders balked at the earlier price.
Investors will now get 43 euros ($49) in cash, up from 39 euros under the prior offer. That’s a premium of about 35% to Qiagen’s closing price in early March, before Thermo Fisher first disclosed its plans, the companies said in a statement Thursday. Qiagen’s board backed the new price.
Qiagen sells products for food and forensic testing, but most importantly, it has ramped up production this year to supply tests and chemicals for the coronavirus. Thermo Fisher faced pressure to sweeten its bid, especially after the Dutch company this week said annual sales may rise as much as 18%, fueled by the pandemic.
“Industry dynamics have changed considerably in the past few months, creating tailwinds and headwinds for our businesses,” Marc Casper, Thermo Fisher’s chief executive officer, said in the statement. “Both of our companies are playing important roles in helping customers to battle the Covid-19 pandemic. After careful consideration, we’ve decided to increase our offer for Qiagen to reflect the fair value of the business, given the current environment.”
The purchase would rank as one of Thermo Fisher’s largest after the company spent $13.6 billion for Life Technologies Corp. to gain DNA-testing capabilities in 2014. Deals have heated up in the industry after a slow start to the year, with this coming one day after Gilead Sciences Inc. agreed to buy Forty Seven Inc. for about $4.9 billion to advance into cancer treatments.
JPMorgan and Morgan Stanley are advising Thermo Fisher. Qiagen hired Goldman Sachs and Barclays Bank.
©2020 Bloomberg L.P.
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