PerkinElmer has signed an agreement to acquire US-based BioLegend, a life science antibodies and reagents provider, in a deal valued at about $5.25bn.
BioLegend provides antibodies and reagents to its academic and biopharmaceutical customers for use in areas including cytometry, proteogenomics, multiplex assays, recombinant proteins, magnetic cell separation and bioprocessing.
The deal, which is claimed to be the largest ever for PerkinElmer, will allow the company to grow in areas including clinical diagnostics.
PerkinElmer president and CEO Prahlad Singh said: “We are thrilled to have the opportunity to bring our technologies and innovative cultures together to create seamless solutions to push science and discovery forward.
“We believe joining our teams presents an incredible opportunity to accelerate discoveries that help life science researchers leverage ever-developing technologies and novel approaches to better understand and fight disease.”
The transaction, which is subject to regulatory approvals and other customary closing conditions, is anticipated to be concluded by the end of this year.
Upon completion of the deal, BioLegend’s San Diego, California-based campus will become PerkinElmer’s global centre for the development of chemical reagents for the combined company.
PerkinElmer stated that it has bridge financing from Goldman Sachs Bank USA to cover the cash portion of the agreed transaction.
It also said that the deal is expected to provide an estimated growth of $0.30 of adjusted earnings per share in the first full year following the close and over $0.50 in the second year.
For the transaction, Goldman Sachs & Co. is acting as exclusive financial advisor, WilmerHale as legal counsel and McDermott Will & Emery as antitrust counsel to PerkinElmer.
J.P. Morgan Securities LLC is acting as exclusive financial advisor while Pillsbury Winthrop Shaw Pittman is serving as legal counsel to BioLegend.