M&A Report: The Top 10 Diagnostics Deals of 2021

As expected, M&A activity in the labs and medical diagnostics space bounced back in terms of both deal volume and value this year. There were seven different billion-dollar acquisitions in 2021, one more than in top-heavy 2020 where the relatively high number of 9-figure deals belied the significant fall off in deal numbers. Here’s a quick rundown of the M&A highlights of 2021.

Top 10 Diagnostic M&A Deals of 2021 (By Deal Value)

Rank	Buyer	Target	Reported Price
1	Thermo Fisher	PPD	$17.4 billion
2	Siemens Healthineers	Varian Medical Systems	$16.4 billion all cash
3	Danaher	Aldevron	$9.6 billion
4	Illumina	Grail	$8.0 billion cash + stock
5	PerkinElmer	BioLegend	$5.25 billion all cash
6	DiaSorin	Luminex	$1.8 billion all cash
7	Roche	GenMark Diagnostics	$1.8 billion all cash
8	Pacific Biosciences	Omniome	$800 million cash + stock
9	Hologic	Mobidiag	$795 million cash + debt assumption
10	PerkinElmer	Oxford Immunotec	$591 million cash

 

Biggest Deal (by Dollar Value): Thermo Fisher’s $17.4 Billion Acquisition of PPD

Having just narrowly failed to acquire Qiagen months before the public health emergency and massive demand for new COVID-19 tests, Thermo Fisher Scientific rebounded quite nicely by posting the year’s biggest deal—the $17.4 billion cash acquisition of PPD, which closed this month. The acquisition of the global clinical research and lab services firm whose operations in 50 different countries generated total revenues of $4.7 billion in 2020 enriches the value that Thermo Fisher can deliver to its extensive network of pharmaceutical and biotech customers. The Massachusetts-based diagnostics powerhouse followed up with a $591 million acquisition of molecular PCR test firm Mesa Biotech in March.

Most Surprising Deal: Illumina’s Acquisition of Grail

Illumina’s move to acquire former liquid biopsy spinoff Grail for $8 billion (including $3.5 billion in cash and $4.5 billion in shares of Illumina common stock) was a head scratcher from the moment it was announced in September 2020. But the real shocker was how and when it closed. While regulatory turbulence wasn’t totally unexpected, the fact that it came mostly from Europe in the form of review from the European Commission (EC) Directorate-General was a stunner. Staring a $300 million termination fee in the face while the EC dragged its feet, Illumina threw caution to the wind and closed the deal in August. It’s now holding Grail as a wholly-owned company that will operate independently while it awaits word from the EU. Assuming it doesn’t have to be unwound, acquiring Grail and its highly touted blood-based cancer screening Galleri test significantly strengthens Illumina’s position in early cancer diagnostics. 

Most Active Company: PerkinElmer

No company was more aggressive in the diagnostics M&A space in 2021 than PerkinElmer. Awash in COVID-19 testing cash, the life sciences and genetics test giant made no fewer than four strategic deals during the year, including two of the top 10: the $5.25 billion acquisition of BioLegend, the largest in company history (at #5) and the acquisition of tuberculosis detection test firm Oxford Immunotec for $591 million (#10). 

On May 13, PerkinElmer announced that it had reached an agreement to buy Nexcelom Bioscience for $260 million in cash. Founded in 2003, Nexcelom produces tools and instruments for cell counting and analysis, as well as fit-for-purpose cell counting method selection and development instruments that follow ISO cell counting standards for use in development of cell, gene, and immune-oncology therapies, virology drugs, and vaccines. Four days after the Nexcelom buy, PerkinElmer made another bold move by agreeing to shell out $155 million in cash for Immunodiagnostic Systems (IDS) to bolster its immunodiagnostics business.  

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This article originally appeared in G2 Intelligence, Laboratory Industry Report, January 2022.