Private Equity Triton Partners Takes Around 10% Stake In Evotec, Reportedly Mulls Potential Takeover Deal

Germany-based Evotec SE EVO is trading on Monday after a report that suggests the company is a takeover target.

The private equity firm Triton Partners is reportedly considering acquiring Evotec, Bloomberg reported, citing people familiar with the matter.

In an SEC filing, Evotec reported that Triton had acquired a 9.99% stake in the company via several open-market transactions.

The company offers drug discovery and development services to several biotech and pharmaceutical companies.

Also Read: Novo Nordisk And Evotec Collaborate On Stem Cell-Based Therapy Development

According to the report, the investment firm has been trying to meet with senior Evotec executives as it looks into a possible buyout.

If Triton wants to increase its stake to 10% or more, it would need approval for foreign investment, the report added.

Any major move would also require backing from Evotec’s key shareholders, including Novo Holdings, the parent company of Novo Nordisk A/S NVO, and the Abu Dhabi-based Mubadala Investment.

Last week, the German company reported third-quarter revenues of 184.89 million euros, down from 196.28 million a year ago, noting a soft market in shared R&D.

It reported an operating loss of 26.46 million euros, compared to 12.19 million euros loss a year ago.

In its second-quarter earnings, Evotec’s CEO said the company is operating in a more challenging market environment, notably the slowdown of early-stage R&D spending.

In October, Evotec announced advancements in its strategic partnership with Bristol-Myers Squibb & Co BMY, which is focused on developing a molecular glue-based pipeline.

Price Action: EVO stock is up 16.2% at $4.80 at last check Monday.

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