Stock Groups

Quidel Tanks on Worries Over Debt, New Equity to Fund Ortho Deal -Breaking

by Mike Robinson

[ad_1]

© Reuters

By Dhirendra Tripathi

Investing.com – Quidel stock (NASDAQ:) plummeted 15% Thursday on fears the company’s purchase of Ortho Clinical Diagnostics (NASDAQ:) will lead to equity dilution and reulted in a more indebted entity. 

This deal will be paid for with cash as well as new shares. The combined entity will also take on Ortho’s debt of $2 billion.

Quidel will be paying $24.68 each Ortho share, which is 15% above its Thursday high at $21.5. Ortho’s stock jumped around 8%.

Ortho will likely close the transaction by June.

Ortho shareholders receive $7.14 per share in cash and 0.1055 shares in stock from the combined company. The combined company will be owned by them approximately 38%.

Quidel’s equity base of 42 million shares had a market cap of around $7 billion at close Wednesday. Ortho’s about 237 million shares were valued at $4.7 billion.

The pandemic has accelerated healthcare industry deals. Quidel and Ortho’s deal demonstrates the growing importance of diagnostics for health management. Quidel, a manufacturer of Covid rapid tests that can be ordered at home or used at point-of care, is also a major player in the market. Ortho’s in-vitro diagnostics are used by hospitals, laboratories and blood banks.

 

Disclaimer: Fusion MediaWe remind you that this site does not contain accurate or real-time data. CFDs are stocks, indexes or futures. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. As such, the prices might not reflect market values and could be incorrect. Fusion Media does not accept any liability for trade losses you may incur due to the use of these data.

Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.

[ad_2]