Thermo Fisher Scientific Inc. (NYSE: TMO), which started as a provider of scientific instruments, has agreed to acquire Mesa Biotech Inc., a privately held molecular diagnostic company, for approximately $450 million in cash. Under the terms of the agreement, Thermo Fisher will pay up to an additional $100 million in cash upon the completion of certain milestones following the close of the transaction.
Mesa Biotech has developed and commercialized a rapid point-of-care testing platform available for detecting infectious diseases including SARS-CoV-2, Influenza A and B, respiratory syncytial virus and Strep A. The company is based in San Diego, California and has approximately 500 employees and revenues in 2020 of approximately $45 million.
“The addition of Mesa Biotech’s easy-to-use, rapid PCR-based test is highly complementary to our existing offering and will further help us meet the continuing demand for Covid-related testing while we work to rapidly scale and develop point-of care tests for other infectious diseases in the future,” says Mark Stevenson, EVP and COO of Thermo Fisher.
The transaction is expected to be completed in the first quarter of 2021, subject to customary closing conditions, including regulatory approval. Upon completion, the business will become part of Thermo Fisher’s Life Sciences Solutions Segment.