Quidel To Buy Ortho Clinical Diagnostics For $24.68/Share: Highlights

Quidel Corp QDEL has agreed to acquire Ortho Clinical Diagnostics Holdings plc OCDX for $24.68 per share in cash and newly issued shares in the combined company, 

• The offer price represents a 25% premium over Ortho’s closing price on December 22, 2021.
• The transaction brings together highly complementary diagnostic portfolios to accelerate product growth & revenues in a total addressable market of $50 billion.
• Quidel anticipates the deal to increase financial flexibility with combined estimated cost synergies of $90 million by the end of year three, revenue synergies over $100 million by 2025, and opportunities for adjusted EBITDA margin expansion, supporting enhanced cash generation.
• The total consideration of approximately $6.0 billion includes $1.75 billion of cash, funded through cash and incremental borrowings. 
• Quidel ended Q3 with cash and cash equivalents of $578.45 million.
• The combined company will also acquire Ortho’s existing net debt of $2.0 billion.
• Each Ortho share will receive $7.14 in cash and 0.1055 shares in the combined company. Ortho shareholders are expected to own approximately 38% of the combined company. 
• The transaction is expected to close in 1H of 2022.
• Price Action: QDEL shares are down 13.9% at $143.12, while OCDX stock is up 8.39% at $21.45 during the premarket session on the last check Thursday.