BILLERICA, Mass. - Bruker (NASDAQ:BRKR) Corporation (NASDAQ:BRKR), a scientific instrument manufacturer, has announced its intention to purchase the assets of NanoString Technologies, Inc. for approximately $392.6 million in cash. The deal, which also includes the assumption of certain liabilities, is expected to close in the second quarter of 2024, following the approval of a court-supervised Chapter 11 sale process on April 19, 2024.
NanoString, a company specializing in spatial transcriptomics and gene expression analysis, has been a significant player in the life science tools market for over fifteen years.
The acquisition will allow Bruker to expand its spatial biology portfolio by incorporating NanoString's nCounter®, GeoMx®, CosMx™, and AtoMx™ product lines. According to Dr. Mark R. Munch, President of the Bruker NANO Group, these platforms will complement Bruker's existing CellScape™ spatial proteomics platform.
In 2023, NanoString reported revenues of around $168 million. However, Bruker has indicated that it cannot provide reliable financial guidance for NanoString's performance for the remainder of 2024 due to the Chapter 11 reorganization and ongoing litigation issues. The company did offer a preliminary estimate that the transaction could dilute non-GAAP EPS by $0.15 to $0.20 for the remainder of 2024.
Looking ahead to 2026, Bruker anticipates that the NanoString business will approach break-even, with resumed revenue growth and margin improvements, benefiting from deal synergies. Bruker's President & CEO, Frank H. Laukien, expressed confidence in the long-term prospects, expecting double-digit organic revenue growth and increasing non-GAAP EPS accretion from the combined Spatial Biology business starting in 2027.
Bruker intends to fund the acquisition through existing cash reserves and debt instruments. Upon completion, NanoString will become part of Bruker's Spatial Biology business.
The transaction has been advised legally and financially by Morgan, Lewis & Bockius LLP and Goldman Sachs (NYSE:GS) & Co. LLC for Bruker, while NanoString is represented by Willkie Farr & Gallagher LLP, AlixPartners LLP, and Perella Weinberg Partners L.P.
This news is based on a press release statement.
InvestingPro Insights
As Bruker Corporation (NASDAQ:BRKR) gears up for its acquisition of NanoString Technologies' assets, investors might consider the recent financial performance and market sentiment towards BRKR. Here are some insights based on real-time data from InvestingPro and InvestingPro Tips:
InvestingPro Data indicates that Bruker has a robust market capitalization of $11.3 billion, reflecting significant investor confidence in the company's market presence. The company also boasts a healthy revenue growth of 17.14% over the last twelve months as of Q1 2023, which could signal a strong operational performance that may continue to benefit from strategic acquisitions like that of NanoString.
An InvestingPro Tip points out that Bruker's management has been aggressively buying back shares, which can often be interpreted as a positive signal about the company's future prospects and valuation. Moreover, the stock's recent entry into oversold territory according to the Relative Strength Index (RSI) suggests that it might be undervalued, presenting a potential buying opportunity for investors.
For those seeking more detailed analysis and additional insights, InvestingPro offers more tips on BRKR, including analysts' predictions and profitability assessments. With the use of coupon code PRONEWS24, users can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. For instance, while some analysts have revised their earnings expectations downwards for the upcoming period, others predict that Bruker will be profitable this year, as it has been over the last twelve months.
To explore these insights further, including the total of 15 InvestingPro Tips available for Bruker Corporation, investors can visit: https://www.investing.com/pro/BRKR.
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