MORGAN HILL, Calif.-- Paramit Corporation announced today that it has entered into a definitive agreement to be acquired by the Tecan Group (SIX Swiss Exchange: TECN) for a total purchase consideration of USD 1.0 billion (CHF 920 million). Based in Maennedorf, Switzerland, Tecan is a leading global provider of laboratory instruments and solutions in life science research and clinical diagnostics. The acquisition will enhance Paramit's capabilities and market leadership in life sciences and in-vitro diagnostics (IVD), significantly accelerate Tecan's entry into medical devices and expand the combined platform's total addressable market to serve its customers around the world. Since 2011, Paramit Corporation has been privately held by Altaris Capital Partners, LLC, a healthcare-dedicated investment firm based in New York, NY.
The transaction will create a combined global platform with world-class design, development and manufacturing capabilities and scale to provide unparalleled support to customers in the fastest growing segments of healthcare. In addition, Paramit will be able to enhance Tecan's service offering for its existing OEM customer base and leverage Tecan's strong commercial channels to further expand Paramit's reach in the European and Asian markets, including China, and beyond.
"It has been an incredible journey establishing Paramit as a global leader in the life sciences and medical device industries alongside Altaris. We are incredibly proud of the organization we have built together and look forward to our future with Tecan," said Billoo Rataul, CEO of Paramit. "Combining Paramit's leading design and manufacturing expertise with Tecan's strengths is the next logical step for our growing business. Becoming part of the Tecan Group will take our industry-leading offering to new customers in expanding markets. It will enable us to further develop our expertise in life sciences and clinical diagnostics and address an extended range of scientific applications. Tecan's commitment to our strategic position in medical devices will also boost our growth in that sector. Our customers stand to gain from the combined supply chain depth and Tecan's broad expertise in design and manufacturing of solutions for highly regulated environments. We passionately share Tecan's customer-focused culture and its mission to contribute to the quality of life of humankind. We are therefore excited to begin this new chapter in the development of our organization."
Tecan CEO, Dr. Achim von Leoprechting, commented: "We are delighted to bring the Paramit team into the Tecan Group. The company's extensive OEM offering and its state-of-the-art development and manufacturing facilities will strengthen our market reach and enable us to more effectively meet customer needs, scaling innovation from research all the way to the clinic. In addition to extending our core markets of life science research and diagnostics, the acquisition will also open a whole new growth market in the field of medical devices. At Tecan, we share Paramit's strong customer-centric culture, expertise and track record in quality and regulatory affairs, which are key differentiators in the industry and essential for OEM success in regulated markets. Paramit's geographic presence is complementary to that of Tecan, benefitting both parties. Tecan will gain new highly efficient manufacturing capacity in Asia and a strong presence for its OEM business in North America. At the same time, Paramit will gain access to Tecan's existing sales channels in other parts of the world. These opportunities will help us to broaden our customer base and offering, while further strengthening our ability to serve the healthcare market."
The transaction is expected to close in the coming months, subject to customary closing conditions. Morgan Stanley & Co. LLC acted as financial advisor and Schiff Hardin LLP acted as legal counsel for Paramit.
Altaris is an investment firm focused exclusively on the healthcare industry. Altaris invests in companies that deliver value to the healthcare system and improve patient outcomes by providing innovative products and services. Since inception in 2003, Altaris has invested in more than 40 companies across its five main investment funds. Altaris has $5.6 billion of equity capital under active management and is headquartered in New York, NY.
For more information, please visit www.altariscap.com
Tecan is a leading global provider of laboratory instruments and solutions in biopharmaceuticals, forensics and clinical diagnostics. The company specializes in the development, production and distribution of automation solutions for laboratories in the life sciences sector. Its clients include pharmaceutical and biotechnology companies, university research departments, forensic and diagnostic laboratories. As an original equipment manufacturer (OEM), Tecan is also a leader in developing and manufacturing OEM instruments and components that are then distributed by partner companies. Founded in Switzerland in 1980, the company has manufacturing, research and development sites in both Europe and North America and maintains a sales and service network in 52 countries. In 2020, Tecan generated sales of CHF 731 million (USD 778 million; EUR 683 million). Registered shares of Tecan Group are traded on the SIX Swiss Exchange (TECN; ISIN CH0012100191).