Roche Holding AG (SWX: RO) said on Monday that it will buy GenMark Diagnostics (NASDAQ: GNMK) for £1.29 billion. The all-cash deal translates to £17.25 per share. To fully acquire the United States-based molecular diagnostic tests maker, Roche intends to launch a tender offer soon.
Roche shares jumped roughly 1% in premarket trading on Monday. The stock opened at £246.47 per share and is currently trading at a slightly higher £247.24 per share. Roche had started the year 2021 at a per-share price of £240.91. If you want to invest in the stock market online, you will need a reliable stockbroker – here’s a comparison of the top few to make selection easier for you.
The deal represents an about 30% premium on GenMark’s closing price on Friday
The deal represents a 43% premium on the per-share price at which GenMark closed on 10th February, before speculations regarding its deal with the Swiss pharmaceuticals’ manufacturer started roaming in media. In comparison, GenMark had closed at £13.27 per share in the stock market on Friday.
GenMark’s molecular diagnostic tests are effective in detecting multiple pathogens in a sample from a single patient. Chief Executive Thomas Schinecker of Roche commented on the news on Monday and said:
“Acquiring GenMark Diagnostics will broaden our molecular diagnostics portfolio to include solutions that can provide lifesaving information quickly to patients and their healthcare providers in the fight against infectious diseases.”
Both companies have received approval for the deal from their respective boards
Roche also highlighted on Monday that both companies have already received approval for the deal from their respective boards. The acquisition is likely to complete later this year in the second quarter. In September 2020, Roche said its Actemra drug effectively reduced the severity of COVID-19 in hospitalised patients.
According to Roche, GenMark’s principal operations, upon completing the deal, will continue at Carlsbad, California (current location). In separate news from Europe, UK’s Deliveroo said that in its upcoming IPO, it intends to sell roughly £1.0 billion worth of new shares. The food delivery company’s listing is likely to be London’s biggest in over seven years.
GenMark was reported about 30% up in premarket trading on Monday. Including the price action, the stock is now exchanging hands at £17.16 per share. In comparison, it had started the year at a per-share price of £10.85. At the time of writing, GenMark is valued at £970 million.
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