PerkinElmer (PKI 63.57) describes itself as a global leader committed to innovating for a healthier world, providing products and services that help its customers solve critical issues impacting the diagnostics, discovery, and analytical solutions markets. Today, PerkinElmer took another step to expand its business reach with the acquisition of German company EUROIMMUN Medical Laboratory Diagnostics AG.
PerkinElmer is going to pay approximately $1.3 billion in cash to acquire EUROIMMUN, which is a global leader in autoimmune testing and has an emerging profile in infectious disease and allergy testing.
EUROIMMUN has global operations and is expected to generate approximately $319 million in revenue this year. China is its largest market, accounting for 45% of 2016 revenue, followed by Europe, which accounted for 30%.
The combination, PerkinElmer said, will expand its reach into autoimmune and allergy diagnostic markets, and provide new infectious disease capabilities to customers in China.
The deal is subject to regulatory approval and customary closing conditions, yet it is expected to be completed in the fourth quarter of 2017. PerkinElmer anticipates it will add approximately $0.28 to $0.30 per share to its 2018 non-GAAP earnings per share results.
In conjunction with today's news, PerkinElmer reaffirmed its 2017 revenue and earnings per share guidance, the latter of which calls for non-GAAP earnings to range from $2.80 to $2.90.
Shares of PKI are up 21.9% year-to-date and are trading close to an all-time high.