Merck announced a $11.3 billion premium acquisition of Bio-Techne (TECH.US), causing the stock to jump 20% in pre-market trading.

Bio-Techne, an American life sciences company, saw its shares surge more than 20% in pre-market trading on Thursday, after Germany's Merck KGaA announced its agreement to acquire the company for $73 per share in cash, with a total transaction value of approximately $11.3 billion (around 9.9 billion euros). The acquisition offer represents a 36% premium over Bio-Techne's one-month volume-weighted average price. The transaction has been approved by Bio-Techne's board of directors and relevant decision-making bodies of Merck, with completion expected by the end of 2026 or early 2027. Funding for the acquisition will come from existing cash and a new debt financing combination. It is expected to immediately enhance sales growth and EBITDA profit margin, with earnings per share growth expected in the third year after completion. Merck anticipates annual cost synergies of approximately 140 million euros, expected to be fully realized in the third year after completion. Kai Beckmann, Chairman of the Executive Board and CEO of Merck, said, "This transaction is an important milestone in advancing our medium to long-term strategic agenda. Bio-Techne is an excellent fit and directly supports our strategic direction a commitment to providing cutting-edge products and solutions across the entire value chain, from laboratory customers to biotechnology and pharmaceutical manufacturers." Founded in 1976 and headquartered in Minnesota, Bio-Techne is a leading global supplier of life science reagents and instruments, with products covering areas such as proteomics, genomics, diagnostics, and cell therapy. The company, with well-known brands like R&D Systems, Novus Biologicals, and ProteinSimple, had revenues of about $1.2 billion for the fiscal year 2025, and employs approximately 3,100 people globally. Merck, headquartered in Darmstadt, Germany, operates in the fields of healthcare, life sciences, and electronics. This acquisition will significantly strengthen its life science division - MilliporeSigma's strength in key reagents and bioprocess solutions, particularly enhancing its presence in rapidly growing sub-markets such as protein analysis and cell culture media. This deal is also one of the largest acquisitions by Merck in recent years, reflecting a strategic trend in the industry where large life science and pharmaceutical companies are seeking to integrate industry resources through external mergers and acquisitions to build end-to-end solutions.