Billion-Dollar Deals are Becoming a Thing in Medtech

Monday was the day of billion-dollar deals in medtech. In addition to Microsoft’s landmark deal, DiaSorin said it would acquire Luminex for $1.8 billion.

The acquisition, which is set to close in 3Q21, could help augment Saluggia, Italy-based DiaSorin’s position in the molecular diagnostics space and strengthen its existing value proposition in line with its strategic priorities.

Through the acquisition, DiaSorin will gain access to Luminex’s molecular diagnostics multiplexing technology. The acquisition will also help expand DiaSorin’s presence in the U.S.

“Luminex perfectly fits with our strategy to grow our positioning in the molecular diagnostics space, to broaden our presence in the U.S., and to create additional value through Life Science offerings,” Carlo Rosa, CEO of DiaSorin Group, said in a release. “Together, DiaSorin and Luminex will provide a unique offer to laboratories, researchers, clinicians, and patients worldwide matching our extensive solutions in immunodiagnostics and molecular diagnostics with Luminex’s outstanding expertise in multiplexing technology and recognized leadership in life science applications.”

Following the acquisition, the combined company will have combined 2020 revenues of approximately $1.5 billion, adjusted EBITDA of about $563 million, and positive Net Financial Position of approximately $400 million.

There have been a few announced deals that have stretched across the billion-dollar mark this year.

Boston Scientific kicked off the billion-dollar deals in January. The Marlborough, MA-based company announced it would acquire Preventice Solutions for $925 million with the potential for $300 million in milestones – which would take it to the billion-dollar mark.

In March, Roche announced it would boost its infectious disease testing offerings through the acquisition of GenMark Diagnostics for $24.05 a share or about $1.8 billion. Roche said GenMark’s syndromic panel testing portfolio will complement its molecular diagnostics portfolio. 

On Monday, Microsoft said it would acquire Nuance, a cloud and AI software specialist with a focus on healthcare, for $19.7 billion. Redmond WA-based Microsoft said the acquisition of Nuance will help double the total addressable market (TAM) in the healthcare provider space. This will bring Microsoft’s TAM in healthcare to nearly $500 billion.