- PerkinElmer Inc's PKI has agreed to acquire privately-held BioLegend for $5.25 billion in cash and stock.
- The BioLegend deal will expand PerkinElmer's existing life science franchise into new segments. The company expects to close the deal by the end of 2021.
- BioLegend, which has more than 700 employees, estimates to report 2022 revenues of $380 million.
- The company expects the combination to be accretive to its existing revenue growth and margin profile and provide an estimated $0.30 of adjusted EPS accretion in the first full year and greater than $0.50 in the second year following close.
- The combined entity will generate immediate revenue synergies, expected to reach $100 million annually by the fifth year following the transaction close.
- Results: Q2 adjusted EPS reached $2.83, beating the consensus of $2.41 and 80% higher than $1.57 posted a year ago.
- It clocked Q2 sales of $1.23 billion ahead of the analyst consensus of $1.12 billion and up 51% Y/Y, with organic growth of 41%.
- Adjusted operating income of $411 million increased 80%, and margin improved around 540 basis points to 33.5%.
- Diagnostic segment sales increased 70% Y/Y to $716 million, and organic revenue increased 59%.
- Discovery & Analytical Solutions business generated sales of $513 million, +31% on the reported basis and 22% higher organically.
- Guidance: For Q3 of 2021, the company forecasts adjusted EPS of $1.62 below the consensus of $1.72.
- It sees adjusted revenue of approximately $1.00 billion, higher than the consensus of $983.7 million.
- For the full year 2021, the company raised the adjusted EPS outlook to $9.88 from the prior outlook of $9.40, versus the consensus of $9.32.
- It expects 2021 adjusted revenue of $4.57 billion, surpassing the estimate of $4.4 billion.
- Price Action: PKI shares closed at $164.34 on Friday.
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