Dive Brief:
- Qiagen said Wednesday it has agreed to a takeover offer from EQT Private Equity valued at 10.8 billion euros (about $12.1 billion), including approximately $1.1 billion of debt.
- The agreement comes less than two months after the testing company, long a rumored takeover target, installed Jonathan Pratt as its new CEO. Six years ago, Thermo Fisher Scientific was set to buy Qiagen, but the deal fell apart after shareholders objected to the price.
- William Blair analysts, in a Thursday note, said EQT’s all-cash offer of 46.50 euros per share (about $52.20) was reasonable, given Qiagen’s relatively lower growth profile.
Dive Insight:
EQT’s offer represents a premium of roughly 40% to Qiagen’s closing share price of 33.15 euros on the Frankfurt-based Xetra electronic trading system on July 8, the last trading day before reports of takeover interest from private equity firms were published, Qiagen said.
The company said its supervisory board and managing board, following a review of strategic options, agreed to recommend accepting EQT’s offer and fully support the transaction. The review included discussions with both strategic and financial parties.
Qiagen said it will gain greater flexibility to invest for the long term under private ownership and be better positioned to deliver on its full potential.
“Under private ownership, we can move faster and have greater freedom to put resources behind the most attractive opportunities that align best with our long-term strategy. That can help us grow the business in line with our priorities,” said Pratt.
The deal price implies about 15 times William Blair’s estimate for 2027 earnings before interest, tax, depreciation and amortization. That is below comparable life sciences transactions generally in the high teens to low 20s, the analysts said.
“There is plenty to like about Qiagen’s core portfolio,” the William Blair analysts said. “However, broader-based growth has remained elusive, with gains in some businesses offset by headwinds elsewhere.”
EQT agreed to support Qiagen’s long-term development, including commitments related to its strategy, business, key brands, operational footprint, R&D activities, employee arrangements and financing. The company will continue to operate under the Qiagen name.
The deal is expected to close in mid-2027, subject to Qiagen shareholder and regulatory approvals.
