Abcam To Acquire Supplier BioVision For $340M In Cash

Abcam plc ABCM has agreed to acquire BioVision Inc, a wholly-owned Boai NKY Medical Holdings Ltd subsidiary, for $340 million in cash.
The Milpitas, California-based BioVision is a distributor of life science research tools to biopharma, diagnostic and academic customers, with strength in biochemical and cell-based assay kits.
BioVision started supplying Abcam in 2003, and the transaction represents a compelling strategic fit for Abcam.
Abcam plans to fund the acquisition from existing cash resources and a partial drawdown of its revolving credit facility.
As of 31 December 2020 (1H of FY2021), Abcam had a net cash position of £211.9 million.
For the fiscal year ended December 2020, BioVision generated revenue of $33.8 million and an operating profit of $12.6 million.
Abcam expects to close the deal by the end of 2021 and expects it to be accretive to adjusted EPS from the first full year of ownership.
Concurrent with the acquisition, Abcam entered into a memorandum of understanding to establish a partnership to develop and supply products and services to NKY to support ongoing product development and commercialization in the IVD field.
A conference call and webcast for analysts and investors will be held today at 9:30 AM E.T.
Price Action: ABCM shares traded higher by 2.01% at $19.29 in premarket on the last check Monday.