Thermo Fisher Scientific is poised to add coronavirus SARS-CoV-2 test kit to its diagnostics business after agreeing an $11.5bn takeover of Qiagen NV.

The firms announced the agreement on Tuesday, valuing Qiagen at $11.5 billion, or €39 ($43.4) per share.

Thermo CEO Marc N. Casper said, “This acquisition provides us with the opportunity to leverage our industry-leading capabilities and R&D expertise to accelerate innovation and address emerging healthcare needs.

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“For shareholders, we expect the transaction to be immediately accretive and to generate significant cost and revenue synergies.”

Diagnostics expansion

Thermo’s diagnostics business is focused on allergies, autoimmunity, transplant-related studies and cancer.

Qiagen’s strength is in molecular diagnostics, particularly in areas like infectious disease. Last month, for example, the firm started shipping a new kit that detects the novel coronavirus SARS-CoV-2.

Prior to that, in January, the firm launched QCI Precision Insights service in Europe. The service is designed to help researchers translate patient data into state-of-the-art clinical insights and therapeutic options.

Thermo also said Qiagen’s sample preparation, assay development and bioinformatics capabilities will fit with its genetic analysis and biosciences capabilities.

Financials

Qiagen announced it had received several conditional, non-binding indications of interest from would-be buyers in November.

A month later Qiagen rejected the offers describing them as “not compelling.” Instead the firm said it planned to focus on a stand-alone plan having reviewed its options.

The accepted offer will see Thermo pay $10.1 billion in cash and agree to take on $1.4 billion in net debt.

The transaction – which is still subject to shareholder approval – will be conducted by Quebec B.V, a wholly-owned subsidiary of Thermo Fisher.

Thermo said it expects to realize synergies of $200 million, consisting of $150 million of cost synergies and $50 million of adjusted operating income benefit from revenue synergies.