SD Biosensor and SJL Partners have entered into an agreement to acquire US-based diagnostic testing solutions provider Meridian Bioscience in an all-cash deal worth around $1.53bn.

Meridian Bioscience will be acquired by a newly formed affiliate vehicle of SD Biosensor and SJL Partners, together known as Consortium.

Under the agreement, Meridian shareholders will receive $34 per share in cash, representing a premium of about 32% over Meridian’s closing stock price on the day before the Consortium made its first offer before the market opened on 18 March 2022.

Upon closing of the transaction, SDB is expected to own about a 60% stake in Meridian, while SJL will own about a 40% stake in the diagnostic testing solutions provider.

Furthermore, Meridian will no longer be traded or listed on any public securities exchange.

The transaction, expected to close in the fourth calendar quarter of 2022, is subject to approval by Meridian shareholders, receipt of required regulatory approvals and ongoing investigation by the US Department of Justice, and other customary closing conditions.

Meridian chief executive officer Jack Kenny said: “We are excited to announce this new chapter for Meridian after the many years spent transforming the Company for sustainable growth.

“In addition to delivering immediate and significant value to our shareholders, we believe the transaction will enhance our ability to serve customers as we navigate the decline in Covid-19 testing demand and develop new products with the benefit of SDB’s industry expertise and complementary offerings.

“Current and prospective employees around the world will also benefit from an even stronger Meridian supported by SDB’s and SJL’s financial backing and experience.

“I look forward to working with SD Biosensor and SJL and the rest of our Meridian team to build long-term strength and drive further growth in the diagnostics space.”

Following the conclusion of the transaction, the Consortium plans to operate Meridian as a stand-alone business, with the current management team and corporate headquarters continuing to exist.

Meridian develops, manufactures, markets, and distributes a wide range of new diagnostic products.

The company offers solutions to hospitals, reference laboratories, research centres, veterinary testing centres, physician offices, diagnostics manufacturers, and biotech companies in over 70 nations around the world.