Healthcare firm Thermo Fisher Scientific said it would acquire healthcare data provider CorEvitas for $912.5 million in cash, as the medical products maker looks to boost its portfolio of services offered to pharmaceutical clients.
Thermo Fisher has been on an acquisition spree in recent years as it strives to become a one-stop shop for biopharma services.
It completed a $2.6 billion buyout of UK-based diagnostics firm Binding Site last year, and spent about $17.4 billion in 2021 to buy clinical research services provider PPD.
CorEvitas is expected to boost Thermo Fisher’s annual adjusted earnings per share by 3 cents next year. The data provider also has the potential to generate $110 million of revenue in 2023, Thermo Fisher said.
CorEvitas’ data intelligence platform would be added to Thermo Fisher’s laboratory products and biopharma services unit, upon completion of the deal.
This platform collects real-world data from patients and provides them to pharmaceutical and biotech clients for them to monitor use of their therapies post approval by the U.S. health regulator.
CorEvitas will help Thermo Fisher to work with customers in the post-approval setting, and scale-up from the current services businesses, according to SVB Securities analyst Puneet Souda.
Thermo Fisher’s laboratory products and biopharma services unit, which reported revenue of $5.8 billion for the quarter ended April 1, is the company’s largest unit by revenue.
The scientific instruments maker, which acquired CorEvitas from Boston-based investment firm Audax Private Equity, expects to close the deal by the end of this year.
Shares of Massachusetts-based Thermo Fisher were down 1.3% at $514 in early trading.
