Thermo Fisher Scientific to Acquire Olink in $3.1 Billion Deal to Expand Proteomics Leadership

On October 17, 2023, local time, Thermo Fisher Scientific, a global leading scientific service company, and Olink Holding AB, a leading provider of next-generation proteomics solutions, jointly announced that they have reached an acquisition agreement for approximately $3.1 billion, including about $143 million in net cash.

According to the terms of the transaction, Thermo Fisher will acquire Olink at a cash price of $26 per common share, equivalent to a cash price of $26 per American Depositary Share (ADS). This price is approximately 74% higher than Olink's closing price on Nasdaq last Monday.

Thermo Fisher Scientific Inc. stated that it will commence the acquisition of all issued and outstanding Olink ordinary shares and ADS. Currently, Summa Equity, Olink's largest shareholder, along with other Olink shareholders and management collectively holding over 63% of Olink’s ordinary shares, have signed agreements in support of the acquisition. The boards of both companies have also approved the transaction.The transaction is expected to be completed by the middle of 2024.And is subject to customary closing conditions, including regulatory approvals and the completion of the acquisition. Thermo Fisher plans to fund this acquisition with cash on hand and debt financing.

Olink provides leading solutions for advanced proteomics discovery and development, enabling biopharmaceutical companies and top academic researchers to rapidly and effectively understand diseases at the protein level. Olink's patented Proximity Extension Assay (PEA) technology is used for high-throughput protein analysis and leverages qPCR and next-generation sequencing for data readout. Olink currently offers a database of over 5,300 validated protein biomarker targets.

Thermo Fisher Chairman, President and Chief Executive Officer Marc N. Casper said in a statement, "As our customers continue to advance life sciences research and precision medicine, the acquisition of Olink underscores the profound impact of proteomics. Olink's proven transformative innovations are highly complementary to our leading mass spectrometry and life sciences platforms. Thermo Fisher is uniquely positioned to bring this technology to customers, enabling them to accelerate discoveries and scientific breakthroughs."

Olink CEO Jon Heimer stated, "Olink is committed to enhancing the understanding of human biology by accelerating the adoption of next-generation proteomics and delivering industry-leading data quality at an unprecedented scale. Thermo Fisher's deep life science expertise, global reach, and operational excellence will bring significant opportunities for customers and the company."

Thermo Fisher stated that after the acquisition, Olink is expected to achieve more than $200 million in revenue in 2024 and will become part of Thermo Fisher's Solutions Division, with an anticipated "15% organic growth."

Olink previously forecasted its 2023 revenue to be between $192 million and $200 million. The company had $151.2 million in cash and cash equivalents at the end of the second quarter.

References:

1.Thermo Fisher Scientific to Acquire Olink, a Leader in Next-Generation Proteomics

https://newsroom.thermofisher.com/newsroom/press-releases/press-release-details/2023/Thermo-Fisher-Scientific-to-Acquire-Olink-a-Leader-in-Next-Generation-Proteomics/default.aspx

2.https://www.genomeweb.com/proteomics-protein-research/thermo-fisher-scientific-acquire-olink-31b-deal