Thermo Fisher Scientific Inc. is nearing a deal to acquire Birmingham, England-based diagnostic firm Binding Site for more than £2 billion ($2.3 billion) from private equity fund Nordic Capital, according to people familiar with the matter.
The agreement could be announced as early as this week and would mark a revival to dealmaking in Europe where volumes collapsed this quarter, said the people, who asked not to be identified. The talks are advanced but there’s no certainty the deal will go through, they said.
A representative for Waltham, Massachusetts-based Thermo Fisher declined to comment, while Nordic Capital couldn’t immediately be reached.
Thermo Fisher, which makes scientific instruments and helps manufacture drugs, is among the most acquisitive life-sciences companies. Last year it bought PPD Inc., a provider of clinical and research services, for about $20 billion. In January it bought PeproTech, a closely held provider of recombinant proteins, for about $1.85 billion cash.
Binding Site is developing diagnostic products to detect immune-system disorders and caters to clinicians and laboratory professionals. A deal for the company would be the latest example of health-care transactions still being an active sector for merger activity and a sign of US-based buyers benefiting from a strong dollar, particularly when paying for a pound-denominated asset.
Nordic Capital has recently raised a new buyout fund of 9 billion euros despite a challenging fundraising environment as investors keep cash, cut allocations to private equity and wait for funds to return money before reinvesting. The Stockholm-based firm has a track record in the health care space and is widely regarded as one of the most successful PE funds in that space. It initially invested in Binding Site 11 years ago.
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