DiaSorin in $1.8 billion deal to buy Luminex

Italian diagnostics company DiaSorin SpA agreed on Sunday to acquire Luminex Corp for about $1.8 billion, gaining the maker of Covid-19 testing kits and a greater foothold in the US market.

DiaSorin agrees to pay $37 a share in the all-cash transaction, according to a statement. That’s about 12% more than Luminex’s closing share price on April 9.

Austin, Texas-based Luminex makes Covid-19 laboratory tests along with a suite of other biological testing technologies. In late March, it applied to the US Food and Drug Administration for emergency approval of a lab test that combines tests for Covid-19 and the flu.

“Luminex perfectly fits with our strategy to grow our positioning in the molecular diagnostics space,” DiaSorin chief executive Carlo Rosa said in the statement.

The purchase also gives it a bigger presence in North America, which accounted for about 37% of its sales in 2020, according to data compiled by Bloomberg.

Like many companies in the labtesting space, the pandemic has been a boon for Luminex’s business.

The sale comes amid a pick-up in health-care mergers, including among companies that make products for dealing with the coronavirus pandemic.

Luminex had been exploring strategic options, including a potential sale, after receiving takeover interest from companies including DiaSorin, people familiar with the matter told Bloomberg News earlier this year.

The transaction will be funded through a mix of cash and external financing. It’s expected to close in the third quarter and is subject to shareholder approval.