A North East-based pharmaceutical company is expected to be acquired in a deal worth £ 110million.
Boldon, South Tyneside-based Immunodiagnostic Systems (IDS) has entered into a $ 155 million buyout deal with US life science company PerkinElmer.
IDS was founded in 1977 as RIA UK and specializes in the development, manufacture and marketing of diagnostic tests in the clinical laboratory market. Over the past year, the company has become involved in Covid-19 testing
The deal will see the company become part of the London-based Euroimmun business, which PerkinElmer acquired in 2017. The Massachusetts-based company said the deal would allow it to grow its global diagnostics business.
Jaap Stuut, CEO of IDS, said: “I am very pleased that after the approval of this proposed transaction IDS is able to join the PerkinElmer family. This will allow IDS to significantly accelerate our existing growth plans, while providing exciting new opportunities for our employees, customers, partners and suppliers.
“Euroimmun AG has been a valued partner of IDS for many years, and this transaction will allow us to cooperate together to continuously provide innovative diagnostic solutions to existing and new customers around the world. I am delighted and convinced that this proposed transaction represents an excellent opportunity for all stakeholders. “
IDS has approximately 275 employees worldwide, with its base in South Tyneside supported by regional offices in Europe, the United States and Brazil.
The company, which trades on the AIM exchange, has won a number of Queen’s Awards for Enterprise and reported income of £ 39.3million last year.
In a statement, IDS’s board of directors said it unanimously recommends the takeover offer, which is significantly higher than the company’s share price at the end of last week.
Subject to shareholder approval and the successful completion of regulatory tests, the transaction could close in the third quarter of the year.
Wolfgang Schlumberger, CEO of Euroimmun, said: “This proposed transaction is of great value to both parties as the respective product lines are to a large extent complementary.
“The cooperation of our global distribution channels, the expansion of the immunoassay portfolio in closely related indication areas and IDS’s fully automated random access chemiluminescence platform strengthens our presence in immunodiagnostics.
“Our customers will benefit from a broader range of laboratory diagnostic analyzes and workflows. We are excited about these new opportunities and look forward to welcoming Immunodiagnostic Systems to the PerkinElmer family following the closing of the transaction.