EQT to buy molecular testing firm Qiagen for $10.8 billion

EQT to Acquire Qiagen for $10.8 Billion in Major Private Equity Deal

Overview of the EQT-Qiagen Acquisition

Deal Announcement and Background

Oct 21 (Reuters) - Sweden's EQT will buy molecular testing company Qiagen for about €9.6 billion ($10.78 billion), the companies said on Wednesday, ending years of takeover speculation surrounding the Dutch firm.

The deal reflects increasing private-equity appetite in the sector, where demand for molecular testing technologies has driven dealmaking.

Offer Details and Participants

Buyout firm EQT offered €46.50 ($52.22) a share for Qiagen, representing an 8.6% premium to its last close. Affiliates of the Abu Dhabi Investment Authority and Canada Pension Plan Investment Board are also participating in the offer.

Market Reaction

Qiagen's US-listed shares rose 0.7% in extended trading after the announcement. Its stock is up about 10% so far this year as reports of takeover interest from private equity firms including EQT helped it recover from more than six-year lows hit in May.

Financial Structure and Timeline

Valuation and Funding

The deal, which values Qiagen at about $12.1 billion including about $1.1 billion in net debt, is expected to close in mid-2027. EQT has secured equity and debt financing to fund the offer.

Board Approval and Strategic Rationale

Qiagen's board has approved the offer, with supervisory board chairman Stephen Rusckowski saying going private was the "best path forward for Qiagen, its shareholders and other stakeholders."

Qiagen’s Acquisition History and Performance

Previous Takeover Attempts

Qiagen, which provides technologies and services for analyzing genetic material in research and clinical laboratories, became a takeover target after previous CEO Peer Schatz announced his departure in October 2019.

Thermo Fisher Scientific agreed in 2020 to acquire Qiagen in a deal valued at about $11.5 billion, but abandoned the takeover after failing to secure enough shareholder support.

Pandemic Impact and Investor Sentiment

Surging demand for Qiagen's coronavirus testing products during the COVID-19 pandemic boosted the company's performance and share price, leading some investors to view the offer as too low.

Financial Outlook and Reporting

Suspension of Outlook

Qiagen said it was suspending its full-year 2026 outlook pending the deal. It reported preliminary third-quarter net sales of $548 million and adjusted diluted earnings per share of $0.65.

Exchange Rate Information

($1 = 0.8904 euros)

Reporting Credits

(Reporting by Ananya Palyekar and Sriparna Roy in Bengaluru; Editing by Diti Pujara and Pooja Desai)