Perkinelmer sees growth on the Horizon with $383m buy

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Perkinelmer was one of the first groups to gain US emergency authorisation for a coronavirus test, in late March, and its Covid-19 related product sales have done nicely since. Its other businesses, however, have suffered from the pandemic: reporting its third-quarter results last week the company said its much larger non-Covid portfolio saw sales decline 6%. The company has today opted to bolster this segment by acquiring the UK cell engineering company Horizon Discovery for $383m in cash. At £1.85 a share the Perkinelmer deal comes in at a premium of 108% to Horizon's closing share price on Friday; however, the target group's stock was trading not far off this level in February, before Covid-19 hit Western countries. Horizon, which makes Crispr and RNAi reagents, and specialises in cell engineering and base editing, has had a torrid time during the pandemic: the group was reportedly considering uplisting from the UK’s Aim to the Nasdaq, but its sales have been hit hard by the rapid reduction of academic research. Perkinelmer might succeed where Abcam failed; the latter made a hostile offer to Horizon in 2018.

PerkinElmer's M&A activity over the past five years
Date Target  Target location Value ($m) Focus
Nov 2, 2020 Horizon Discovery  UK 383 Cell engineering 
Nov 15, 2019 Biosense Technologies India - In vitro diagnostics
Dec 19, 2017 Euroimmun Germany 1,343 In vitro diagnostics
Jan 9, 2017 Tulip Diagnostics India 125 Blood; diabetic care; general hospital & healthcare supply; in vitro diagnostics
Dec 31, 2016 Bioo Scientific USA 64 In vitro diagnostics
Jan 26, 2016 Vanadis Diagnostics Sweden - In vitro diagnostics; obstetrics & gynaecology
Source: EvaluateMedTech.

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