Chembio Diagnostics Inc (CEMI) has seen a significant increase in its stock price with shares rising 23.32% to reach $0.44 in early trades on Wednesday. This growth was fueled by the company’s recent announcement of a takeover move.
CEMI has announced what move?
The French rapid tests company Biosynex, which specialized in design and distribution, has signed a definitive merger agreement with Chembio (CEMI). In an all-cash transaction valued at $17.2 million, a Biosynex subsidiary will acquire Chembio for $0.45 per share, 27% more than CEMI’s closing price on January 30, 2023.
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Two of the world’s leading rapid diagnostic testing companies will be combined by this acquisition. Diagnostic tests are designed for use by healthcare professionals as well as consumers. CEMI’s infectious disease assays cover sexually transmitted diseases, respiratory viruses, fevers, and tropical diseases, using proprietary, accurate, and easy-to-use technologies like DPP, STAT-PAK, and SURE CHECK.
Among Biosynex’s diversified portfolio of rapid tests, the French company offers infectious disease and women’s health tests to pharmacies and hospitals. Chembio and its subsidiaries in Germany, Brazil, and Malaysia will be operated by Biosynex as a group of wholly owned companies. The company also provides Point of Care devices and molecular diagnostic systems to these market sectors.
Chembio and Biosynex are joining forces to expand their rapid diagnostic portfolio, global footprint, and product development. The combination of Chembio’s differentiated tests with Biosynex’s virology portfolio creates a more comprehensive offering. The collaboration also expands Biosynex’s presence globally and enhances product development through the expertise of both companies. The consolidation of operations offers potential cost savings and value creation.
How CEMI will be executing the transaction?
A subsidiary of Biosynex will make a tender offer to acquire Chembio’s shares. The offer is subject to certain conditions, such as the tendering of a majority of Chembio’s outstanding shares. The merger of Chembio (CEMI) with Biosynex’s subsidiary is expected to close in the first quarter of 2023, and the remaining CEMI shares will be canceled for $0.45 per share. The deal is expected to close in the first quarter of 2023.
