Quidel buying Ortho Clinical Diagnostics in $6B deal

Quidel Corp. said Thursday it agreed to acquire Raritan-based Ortho Clinical Diagnostics Holdings PLC for $24.68 per share of common stock in cash and newly issued shares in the combined company. The price amounts to a 25% premium over Ortho’s closing price Wednesday and an equity value of about $6 billion.

The transaction is expected to close during the first half of fiscal year 2022, subject to customary closing conditions.

“The combination with Ortho will help solidify Quidel as a leader in the diagnostics industry, bringing together innovative, complementary products, solutions and services that enhance the health and well-being of patients across the globe,” said Douglas Bryant, CEO and president of Quidel, who will serve as chairman and CEO of the combined company.

“Establishing a stronger leadership position, we expect the combined company will emerge as a global player with top-tier R&D capabilities, a more diverse product pipeline and broader geographic footprint. Importantly, our complementary cultures are underpinned by a commitment to our customers, patients and the communities we serve, reinforcing our confidence in the long-term value creation of this transaction. We are impressed by what Ortho has accomplished for patients. We look forward to joining together to continue the strong patient focus that is core to our mission, creating an organization with a shared goal of discovering, developing, and delivering innovative solutions to our customers.”

The combined organization will unite world-class technologies and platforms to benefit customers with expanded access to clinical chemistry, immunoassay, molecular diagnostics, immunohematology, donor screening and point-of-care diagnostics offerings.

Further, the combined company will be poised to meet patient testing needs at all points of the care continuum — reference labs, hospitals, physicians’ offices, urgent care centers and at-home/retail locations. With complementary areas of focus, the combined company will also operate with global reach and scale, maintaining the speed and agility that is fundamental to enhance Quidel’s current strategic approach.

Quidel’s financial advisers in connection with this acquisition are Perella Weinberg Partners LP and Citi, and its legal adviser is Gibson, Dunn & Crutcher LLP.

Ortho’s exclusive financial adviser is J.P. Morgan Securities LLC, and its legal adviser is Latham & Watkins LLP.