Will There Be a Limit to COVID-19 Fueled M&A in 2021?

Companies with COVID-19-based diagnostics are proving to be extremely active on the M&A front this year. PerkinElmer is the latest firm to exercise its deal-making power, reaching an agreement to acquire Immunodiagnostic Systems (IDS) for about $155 million.

The transaction is expected to close in 3Q21.

Waltham, MA-based Perkin Elmer said the acquisition will help it grow its overall diagnostics business and its immunodiagnostics segment. Perkin Elmer said IDS’s portfolio and expertise will integrate into its EUROIMMUN division.

“This proposed transaction is highly valuable for both parties as the respective product lines are to a large extent complementary,” Wolfgang Schlumberger, CEO of EUROIMMUN, said in a release. “The cooperation of our global distribution channels, the expansion of the immunoassay portfolio in closely related indication fields, and IDS's fully automated random access chemiluminescence platform strengthens our presence in immunodiagnostics. Our customers will benefit from a broader range of assays and laboratory diagnostic workflows.”

Boldon, UK-based IDS operates through the following business units: Automated IVD Business, Manual IVD Business, and Licensing and Technology. The Automated IVD Business unit offers an analyzer that automates nearly all steps required for performing a test using their kits. The Manual IVD Business unit sells assay kits whereby the testing is performed by laboratory technicians. The Licensing and Technology unit monetizes the technology and know-how that the company owns through original equipment manufacturer partners. 

IDS was founded in 1977.

M&A Surge

PerkinElmer has made a definite impact during the pandemic – receiving emergency use authorization for multiple diagnostic including an antibody test and one for asymptomatic people. The impact translated into added firepower to go after M&A.

This has become somewhat of a trend amongst companies with COVID-19 diagnostic offerings. Thermo Fisher Scientific and Hologic both hold the distinction in the group of having some of the largest deal value amount-wise.

The Waltham, MA-based Thermo Fisher Scientific announced in January that it would acquire Mesa Biotech for about $450 million in cash with the potential for $100 million.

Hologic had the largest deal, noting it would acquire Mobidiag Oy, a molecular diagnostics firm for about $795 million.

Hologic has set another record too –in the sheer number of deals that have been announced. The Waltham, MA-based company has made plans to acquire four companies so far.