UPPSALA, Sweden - The UK Competition and Markets Authority (CMA) has unconditionally approved Thermo Fisher Scientific Inc.'s (NYSE: NYSE:TMO) tender offer for Olink Holding AB (Nasdaq: NASDAQ:OLK), a move that paves the way for the completion of the acquisition process. Thermo Fisher, through its subsidiary Orion Acquisition AB, proposed to purchase all outstanding shares of Olink for $26.00 per share.
The tender offer, announced on October 17, 2023, is expected to conclude promptly after the offer expires at 5:00 p.m. Eastern time on Tuesday, following the CMA's green light.
The successful completion of the offer is contingent upon Orion Acquisition AB holding more than 90% of Olink's issued and outstanding shares immediately before the offer's expiration, excluding shares held in treasury or by Olink subsidiaries.
Olink, founded in 2016, specializes in proteomics, providing products and services that support the scientific community in disease research and patient care. The company has established a significant presence in Europe, North America, and Asia, with headquarters in Uppsala, Sweden.
The acquisition is subject to certain conditions detailed in the Offer to Purchase document dated October 31, 2023. These documents, along with the solicitation/recommendation statement by Olink, contain critical information for investors and shareholders regarding the terms of the tender offer.
Investors and shareholders are encouraged to review these materials, which are available on the U.S. Securities and Exchange Commission's website, Olink's investor relations page, and Thermo Fisher's investor relations department.
The information in this article is based on a press release statement and is intended to provide shareholders and the investing public with factual updates on the acquisition process.
In other recent news, Olink Holding AB has been maintaining a steady pace in the market with a price target of $26.00, as confirmed by Canaccord Genuity. This follows the company's mixed performance in its first-quarter 2024 financial results. Although revenues and gross margin fell short of expectations, Olink demonstrated robustness in adjusted EBITDA and key operating metrics.
Adding to the recent developments, Thermo Fisher Scientific has announced plans to acquire Olink, a move currently under investigation by the UK Competition and Markets Authority (CMA). This regulatory scrutiny adds an element of uncertainty to the anticipated merger, set to finalize by mid-2024.
The outcome of this investigation could significantly impact Olink's valuation and its future as an independent entity. These unfolding events underscore the importance of the current market conditions and regulatory developments in assessing Olink's standalone value.
InvestingPro Insights
As Thermo Fisher Scientific moves forward with its acquisition of Olink Holding, investors are closely monitoring Olink's financial health and market performance. According to InvestingPro data, Olink has a market capitalization of $3.21 billion USD. Despite not being profitable in the last twelve months, the company has shown a solid revenue growth of 18.16% over that period. Additionally, Olink's stock has been trading near its 52-week high, with the price representing 99.04% of this peak.
InvestingPro Tips suggest that Olink's stock is currently in overbought territory based on the Relative Strength Index (RSI), and while the stock generally trades with low price volatility, it is trading at a high revenue valuation multiple. These insights might indicate that investors are optimistic about the company's future growth prospects, despite analysts' expectations that Olink will not be profitable this year. Moreover, Olink's liquid assets exceed its short-term obligations, which could be a sign of financial stability as it enters this new chapter with Thermo Fisher.
For investors looking for a deeper analysis, there are additional InvestingPro Tips available on Olink, which can be accessed through InvestingPro's platform. By using the coupon code PRONEWS24, users can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking even more valuable insights to guide their investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.