Quidel Corp, a maker of COVID-19 tests, agreed to buy Ortho Clinical Diagnostics Holdings for about US$6 billion, less than a year since the Carlyle-backed firm went public.

Quidel said on Thursday it would pay Ortho Clinical $24.68 per share, representing a premium of 24.7% to Ortho Clinical’s last close, in a cash and stock deal and will acquire Ortho’s existing net debt of $2bn.

Shares in Ortho Clinical were up 16% at US$23, while Quidel was down 3.8% in premarket trading.

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Ortho Clinical makes products for diagnosing diseases and other equipment used for in-vitro diagnostics, a nearly US$80 billion market that serves hospitals and clinics. It also has several COVID-19 tests authorized for emergency use in the United States.

Quidel is well-known for its COVID-19 tests that have helped drive its sales in recent quarters. The company, which also sells molecular diagnostics and cell culture tests, hopes to benefit from Ortho Clinical’s presence in more than 130 countries.

The deal is expected to close in the first half of 2022, the companies said.

Source: The Edge Markets

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