Thermo Fisher to spend $17 billion on PPD acquisition

  • Thermo Fisher Scientific (NYSE:TMO) has agreed to acquire PPD, Inc. (NASDAQ:PPD) for a total cash price of $17.4B plus net debt of $3.5B.
  • The purchase consideration at $47.50 per share indicates ~24% premium to PPD's closing price on Tuesday, after its shares rose ~12% in reaction to market speculations of the deal.
  • PPD will be part of Thermo Fisher's Laboratory Products and Services Segment with estimated synergies of ~$125M by year three following the close which is anticipated by the end of 2021 subject to customary closing conditions and regulatory approvals.
  • The acquisition will be immediately accretive to Thermo Fisher's adjusted EPS, adding $1.40 in the first 12 months after close.

    For this year the company, located in Waltham revenue will be around 35.5 billion USD. This is according to the average of the analysts' estimates. This is hugely more than 2020's revenue of 32.22 billion USD.

    Historical revenues and results Thermo Fisher Scientific plus estimates 2020

    aandelenanalyse

    The analysts expect for 2021 a net profit of 8.73 billion USD. According to most of the analysts the company will have a profit per share for this book year of 22 USD. The price/earnings-ratio is then 21.93.

    For this year the analysts expect a dividend of 97 cents per share. The dividend yield is then 0.2 percent. The average dividend yield of the health care companies equals a low 1.46 percent.

    Thermo Fisher Scientific 's market capitalization is based on the number of outstanding shares around 192.34 billion USD. The Thermo Fisher Scientific stock was the past 12 months quite volatile. Since last April the stock is even 51 percent higher. This year the stock price moved between 316 and 533 dollar.

    Historical stock prices Thermo Fisher Scientific

    equity research thermofisherscientific

    At 16.27 the stock trades 0.58 percent lower at 482.36 USD.

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