Deal: PerkinElmer Buys Antibody Maker BioLegend For $5.3B
- July 26, 2021
- 4 minutes read
PerkinElmer, a publicly-traded medical devices and diagnostics company, had made its biggest acquisition yet. It’s agreed to buy BioLegend, a privately-held company that makes antibodies and reagents for biomedical research.
- PerkinElmer will pay the sum of $5.3bn in cash and stock to buy BioLegend, marking the company’s biggest acquisition in its existence. It’s a major play that PerkinElmer is making, as it says BioLegend expects to have $380mn in sales in 2022, implying a multiple of about 14x to buy the company.
- BioLegend was founded in 2002 and has been based in the state of California for a long time. It has more than 700 employees, most of whom are based in the US.
- BioLegend shined during the Covid pandemic as the company provided antibodies and other tools used for biomedical research tackling the virus. Now, just about a year later, it’s culminated in a big exit for the two-decade-old company.
- PerkinElmer has taken financing from Goldman Sachs to finance the cash portion of BioLegend’s acquisition. The acquisition is expected to be completed this year.
- The deal for BioLegend marks one of the biggest biotech acquisitions this year. The past year (2020) and the current (2021) have been a booming one for biotech companies, especially those involved in tackling the Covid pandemic.
- Investors didn’t reach much to PerkinElmer stock (NYSE: PKI) as its purchase of BioLegend was announced. The stock went up just 2% during trading on Monday, a normal jump by its historical trading standards.