Siemens has been given the green light to acquire the diagnostics division of Bayer Healthcare without restrictions. The approval was granted today by the European Commission, following the earlier approval by U.S. antitrust authorities at the beginning of October. This follows the acquisition of the U.S. firm Diagnostic Products Corporation (DPC), which was completed at the end of July. Upon completion of the Bayer acquisition, which is expected by early 2007, both companies will be merged and will operate as "Siemens Medical Solutions Diagnostics,” a U.S.-based subsidiary and part of Siemens Medical Solutions.
The successful entry into the in-vitro diagnostics market will allow the company to combine the entire imaging diagnostics, laboratory diagnostics and clinical information technology value chain under one roof and offer its customers customized solutions.
The purchase price for Bayer Diagnostics is roughly 4.2 billion euros (approx. $U.S. 5.3 billion); in fiscal 2005 the Group generated sales of 1.4 billion euros (approx. $1.8 billion) and a double-digit profit margin related to earnings before interest, tax, depreciation, and amortization (EBITDA). The acquisitions of Bayer Diagnostics and DPC (the latter completed in July for a purchase price of 1.5 billion euros, or U.S. $1.86 billion) will make Siemens Medical Solutions number two worldwide in immunodiagnostics. Bayer Diagnostics is also a world market leader in clinical chemistry with a leading position in near-patient testing, laboratory automation and hematology (blood cell diagnostics). In addition, the acquisition of Bayer Diagnostics will enable the Siemens Group to tap the rapidly growing market for molecular diagnostics based on gene analysis (nucleid acid testing).
to Daily News