Dive Brief:
- SD Biosensor said it’s postponing the closing date of its $1.53 billion merger with Meridian Bioscience to gain more time to complete financing.
- The deal now is scheduled to close on Jan. 31. Under the original terms, either party would have been able to terminate the deal if it was not consummated by Jan. 6.
- SD Biosensor is working with investment group SJL Partners to finance the deal. The parties are scheduled to give Meridian an update on their efforts to obtain financing by Jan. 24.
Dive Insight:
South Korea’s SD Biosensor, a company known in the West for its work with Roche, struck the deal to buy Meridian in July to expand into the U.S. in vitro diagnostic market. Last month, Cincinnati-based Meridian told investors it expected the deal to close by the end of the calendar year.
However, the parties now have agreed to changes that will delay the closing of the deal until the end of January. Meridian agreed to the new timeline after its board of directors determined that it is in the best interests of shareholders to allow the buyers more time to complete the financing. Finalizing the financing isn’t a condition to the consummation of the merger.
All the conditions needed to close the deal have been met. Meridian’s stock rose almost 8% in response to the update, climbing close to the agreed merger price of $34 a share on the day of the news.
The updated agreement refers to the continuing U.S. Department of Justice investigation into Magellan, a Meridian subsidiary. As previously disclosed, the DOJ has issued subpoenas in relation to the LeadCare product line. The updated agreement states the buyers can review and discuss in advance any proposed written or oral communication with the DOJ relating to the Investigation.
SD Biosensor has faced its own troubles. In March, the FDA warned people not to use the company’s Standard Q COVID-19 Ag Home Test, saying the test is not “authorized, cleared, or approved” by the FDA for distribution or use in the U.S., citing the risk of false results.
