The Danaher deal is worth $24 per share – a premium of around 40 per cent over Abcam’s undisturbed (the price before any announcement is made) closing share price on May 16.
Abcam says the comprehensive process engaged with over 30 potential counterparties, including more than 20 potential strategic acquirers, before a deal was struck with Danaher.
Abcam, headquartered at Cambridge Biomedical Campus but with US operations, is expected to operate as a standalone operating company and brand within Danaher's Life Sciences segment, furthering Danaher’s strategy to help map complex diseases and accelerate the drug discovery process.
Abcam switched from a UK quoted business to a NASDAQ listing to maximise more value from the business. Danaher is headquartered in Washington but operates globally. The parent organisation was an early acquirer of Cambridge inkjet technology by snapping up Linx Printing in 2004.
The deal has been unanimously approved and recommended by the boards of both Abcam and Danaher.
Founded in 1998, Abcam offers the scientific community highly validated antibodies, reagents, biomarkers and assays to address targets in biological pathways that are critical for advancing drug discovery, life sciences research, and diagnostics. The company’s technologies are used by around 750,000 researchers.
The deal concludes a review of strategic alternatives initiated by the Abcam board in June, following strategic inquiries from multiple parties. The comprehensive process, assisted by Lazard and Morgan Stanley as financial advisers and Latham & Watkins as legal adviser, engaged with over 30 potential counterparties, including more than 20 potential strategic acquirers before entering into a definitive agreement with Danaher.
Peter Allen, Chairman of Abcam, said: “Following a rigorous process, I’m confident this combination with Danaher maximises value for shareholders while delivering an excellent outcome for our employees and customers.”
CEO Alan Hirzel said: “Our strategy has transformed Abcam to become a scale innovator and important catalyst in the global life science community. Danaher shares our passion to help life science researchers achieve their mission faster and their operating company model allows us to continue to pursue our strategy, while harnessing the power of the Danaher Business System to ensure we remain the partner of choice for our customers.”
Rainer M. Blair, President and Chief Executive Officer, Danaher, added: “We couldn’t be more excited to have Abcam join Danaher. Abcam’s long track record of innovation, outstanding product quality and breadth of antibody portfolio positions them as a key partner for the scientific community.
“We look forward to welcoming Abcam’s innovative and talented team to Danaher as we continue to help our customers solve some of the world’s biggest healthcare challenges.”
The acquisition is expected to close mid-2024. Danaher expects to fund the takeover using cash on hand and proceeds from the issuance of commercial paper.
Business Weekly has contacted Jonathan Milner for comment on whether he regards the takeover as a satisfactory outcome for the business he helped launch. Dr Milner had been highly critical of some elements of senior Abcam management, alleging that they were failing to maximise the value of the company.
He was calling for heads to roll unless the company called an EGM and elected him executive chairman. Dr Milner stepped back when it became clear that Abcam was in discussions regarding a potential sale.
