Siemens Medical Solutions and Diagnostic Products Corporation (DPC) have announced a merger agreement under which Siemens will acquire DPC for approximately $1.86 billion. The move is an effort by Siemens to shift into the in-vitro diagnostics market. DPC is one of the global provider of immunodiagnostics, focusing on developing, manufacturing and distributing automated body fluid analyzers and tests some of which are related to cancer and cardiac disease, as well as hormone and allergy conditions. DPC has a market presence in as many as 100 countries with immunodiagnostic systems designed for hospitals, clinics and laboratories.
In the merger, each shareholder of DPC will receive $58.50 (in cash) per share for each share of DPC stock then held, and DPC will become a wholly owned subsidiary of Siemens.
Through the acquisition, Siemens intends to expand its existing healthcare solutions portfolio and further the company’s objective to enable early and specific diagnosis and individualized patient therapy. Siemens is making this effort to bridge the gap between in-vivo and in-vitro diagnostics and bring together a blend of expertise and technologies in diagnostic imaging, healthcare information technology (IT), molecular biology and biochemistry to drive advancements in personalized healthcare across the globe. The acquisition of DPC, it is hoped, will also lead to the development of integrated, clinical workflow-oriented systems that will improve the quality while increasing the efficiency of patient care, the companies said in a joint release.
“We are impressed by DPC’s track record in developing a globally leading immunodiagnostics business and by the quality of its people. The potential is huge to drive ground-breaking innovations by combining DPC’s in-vitro diagnostics leadership with Siemens’ leading position in medical imaging and healthcare IT solutions,” said Erich R. Reinhardt, president and CEO of Siemens Medical Solutions of Siemens AG. “Together, both companies will be empowered to continue to revolutionize the prevention, diagnosis, treatment and management of disease.”
DPC’s diagnostic tests supply information vital to the detection and management of disease, including adrenal/pituitary dysfunction, allergy, anemia, bone metabolism disturbances, cancer, cardiovascular disease, diabetes and reproductive and thyroid disorders.
“We believe that this merger with Siemens will be a very positive development for the future of our employees, customers and the company as a whole. This merger will allow us to continue on our current rapid course of development while also providing DPC access to the resources and support of a recognized leader in the delivery of integrated healthcare solutions,” said Michael Ziering, CEO of DPC. “Siemens Medical Solutions is a perfect match for DPC in terms of corporate philosophy, business practice and future direction.”