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Luminex Jumps on $1.8 Billion Pact to Be Bought by DiaSorin

The Italian diagnostics company DiaSorin agreed to buy Luminex, the Austin maker of COVID-19 testing kits, for $37 a share, or $1.8 billion.

Luminex  (LMNX) - Get Luminex Corp Report definitively agreed to be acquired by the Italian diagnostics company DiaSorin DSRLF for $37 a share cash, or $1.8 billion.

Luminex is the Austin biotech producer of COVID-19 testing kits.

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“Luminex perfectly fits with our strategy to grow our positioning in the molecular diagnostics space,” said Carlo Rosa, chief executive of DiaSorin, the Saluggia, Italy, company focused on in vitro diagnostics. 

The deal price is 23% above Luminex's stock price on Feb. 24 prior to press reports speculating about a deal, DiaSorin said in a statement.

At last check Luminex shares were trading 11% higher at $36.66. DiaSorin shares traded over the counter in the U.S. closed on Friday at $165.82. 

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The purchase will increase DiaSorin's presence in North America, which accounted for about 37% of its sales in 2020, Bloomberg reported.

Had the companies been combined in 2020, they'd have posted total earnings before interest, taxes, depreciation and amortization of €472 million ($562.4 million) on revenue of €1.25 billion ($1.49 billion).

Analysts at Berenberg called the price of the acquisition “reasonable,” Bloomberg reported. They said the deal “has the potential to be about 30% accretive to DiaSorin's earnings per share over the medium term and also makes strategic sense as Luminex fits with DiaSorin's specialty focus.”

“The deal should also help DiaSorin's profit-and-loss statement, with an improvement expected to show in 2022 when the economic conditions should start normalizing,” the analysts added.

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DiaSorin plans to finance the purchase with cash and external financing.

The deal is set to close in the third quarter, pending a vote of Luminex's holders along with conditions including clearances by antitrust regulators and the Committee on Foreign Investment in the U.S., the company added.