Scientific instrument maker PerkinElmer (PKI) - Get PerkinElmer, Inc. Report said Monday it has agreed to buy BioLegend, a provider of antibodies and reagents, for about $5.25 billion in cash and stock.
PerkinElmer shares traded at $165, up 0.4%, in premarket trading. They have gained 9% in the six months through Friday.
PerkinElmer anticipates the combination with BioLegend will be accretive to its revenue growth and margin profile. It also sees the deal providing 30 cents of adjusted earnings per share accretion in the first full year following close and greater than 50 cents in the second year following close.
“The combined company will generate immediate revenue synergies, which are expected to reach $100 million annually by the fifth year following the transaction close,” PerkinElmer said. “And no significant cost synergies are planned.”
The transaction will be the largest in PerkinElmer’s history, and it expects to close the acquisition of BioLegend by year-end.
BioLegend provides its academic and biopharmaceutical customers antibodies and reagents in areas such as cytometry, proteogenomics, multiplex assays, recombinant proteins, magnetic cell separation and bioprocessing. It has more than 700 employees, with estimated 2022 revenue of $380 million.
PerkinElmer also reported revenue of $1.23 billion for the second quarter ended July 4, up 51% from $812 million last year.
GAAP earnings per share from continuing operations totaled $2.19 a share in the latest quarter, up from $1.23 a year ago.