Qiagen NV stocks soared most in 17 years after people with knowledge of the subject said Thermo Fisher Scientific Inc. was considering taking over the molecular testing company.
Thermo Fisher contacted the Dutch firm about a potential purchase that could become one of its biggest deals ever, sources said, requesting not to be named as the information is private. Qiagen's shares rose 14 percent to €33.20, giving it an $8.3 billion market value in Frankfurt.
The negotiations could lead to a deal, and other bidders for Qiagen may appear, sources disclosed. At the end of the New York trade on Wednesday, Thermo Fisher's shares were up 1.4 percent to $300.02, valuing it at more than $120 billion.
According to data compiled by Bloomberg, the potential transaction could become one of the largest purchases by Thermo Fisher, exceeding its $5 billion takeovers of drug ingredient maker Patheon NV in 2017. The company's largest takeover is Life Technologies Corp.'s $15 billion investment in 2014, data show.
Thomas Theuringer, the spokesperson for Qiagen, refused to comment, citing company policy. The company provides molecular testing platforms for doctors, researchers and others that can extract and analyze the DNA and RNA of people.
The company emerged from university research and in recent years has grown amid the genetic testing boom. Thermo Fisher officials from Waltham, Massachusetts were unable to comment immediately.
The science calculation testing company LGC Group has also enticed market interest from big-name investors. Cinven, a private equity firm, has joined forces with the Abu Dhabi Investment Authority to weigh a joint bid for the KKR & Co.-backed company, said people familiar with the issue.
Thermo Fisher Chief Executive Marc Casper said last month that he feels "great" about the company's pipeline of mergers and acquisitions, which "continues to be very active."
Peer Schatz, chief executive officer of Qiagen, announced last month that he will step down from the organization after 27 years, claiming it is time to bring about new leadership.
Until a suitable replacement is appointed, Senior Vice President Thierry Bernard will serve as a temporary top executive as the firm trimmed down its quarterly sales growth forecast.
According to a Bloomberg report, top medical device manufacturers were able to take on extra debt to finance acquisitions. Last year, in a deal valuing the company at about $1.6 billion, Thermo Fisher's rival Medtronic Plc agreed to buy the shares that it does not already own in Mazor Robotics Ltd.
