LONDON, UK / ACCESSWIRE / July 19, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Quidel Corp. (NASDAQ: QDEL), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=QDEL. The Company, which is a provider of rapid diagnostic testing solutions, cellular-based virology assays and molecular diagnostic systems, entered into definitive agreements to acquire the Triage® MeterPro cardiovascular (CV) and toxicology assets and the B-type Naturietic Peptide (BNP) assay business run on Beckman Coulter analyzers from Alere Inc. Triage is a market leader in the point-of-care (POC) market for CV testing. It is said that divestiture of these assets is being done to attain the antitrust approvals required for Abbott's pending acquisition of Alere. For immediate access to our complimentary reports, including today's coverage, register for free now at:

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Acquired Business had Estimated Revenue of $197 million in 2016

Triage® MeterPro assets recorded a revenue of $146 million in 2016, while BNP's estimated revenue for the year was around $51 million.

Quidel plans to sell Triage® MeterPro products and BNP assays through its direct sales team as well as distributors.

Transaction to Create Expanded, Less Seasonal Portfolio

Douglas Bryant, President and Chief Executive Officer of Quidel, mentioned that the Company has been actively looking for acquisition opportunities in high-growth segments in the POC diagnostics market for several years. He said the deal would boost Quidel's growth prospects and create greater value creation opportunities for shareholders.

The benefits can be broadly classified into four heads:

  • Extension in market leadership: This strategic transaction would spread Quidel's market leadership, by adding a well-known cardiovascular and toxicology point-of-care offering to its medical diagnostics portfolio.

  • Boost to future growth: Aging population, evolving lifestyle demographics, and the shift towards POC are making cardiology and toxicology testing a fast growing area in patient care. The Triage® MeterPro system will provide Quidel access to this rapidly evolving cardiac biomarker segment. Moreover, Triage's manufacturing investments and best practices would enhance growth prospects for Quidel.

  • Diversification: Triage has been marketing its rapid diagnostic system in about 90 countries, with 51% of its sales being generated outside North America. Thus, this transaction would stabilize Quidel's revenue profile and boost its geographic and product diversity. The installed base of Triage® MeterPro instruments in the US will perfectly compliment the installed base of Quidel's Sofia and Solana platforms in the hospital segment.

  • Financial and operational benefits: The transaction would be immediately accretive to earnings per share. It is expected to provide synergy opportunities driven by scale. It is also expected to reduce the seasonality associated with influenza.

Financial Details of the Transaction

As per the agreement, Quidel will acquire the Triage business (including real estate for the San Diego Triage facilities) and the BNP business for a total consideration of $400 million plus $40 million in contingent consideration.

Quidel is expected to fund the transaction through a mix of cash and committed financing from Bank of America Merrill Lynch and J.P. Morgan Chase Bank. The transaction is still subject to customary and other terms and conditions. The deal is also subject to completion of Abbott's acquisition of Alere, as well as antitrust approvals. Quidel expects the deal to close by September 30, 2017.

Financial and Legal Advisors

Perella Weinberg Partners L.P. is serving as the exclusive financial advisor to Quidel, while Gibson, Dunn & Crutcher LLP is acting as its legal advisor.

Last Close Stock Review

On Tuesday, July 18, 2017, the stock closed the trading session at $37.36, rising 9.50% from its previous closing price of $34.12. A total volume of 4.04 million shares has exchanged hands, which was higher than the 3-month average volume of 213.63 thousand shares. Quidel's stock price skyrocketed 60.62% in the last three months, 89.07% in the past six months, and 80.40% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have soared 74.42%. The stock is trading at a PE ratio of 362.72. At Tuesday's closing price, the stock's net capitalization stands at $1.24 billion.

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