UPDATE: Zoetis Completes Acquisition of Abaxis in $2 Billion Deal

The acquisition is expected to boost Zoetis’s presence in the growing veterinary diagnostics category, particularly overseas.
VMD Staff
Published: August 01, 2018
(August 1) — Zoetis announced Tuesday the completion of its acquisition of Abaxis, a developer and manufacturer of diagnostic instruments for veterinary point-of-care services, for nearly $2 billion—$83 per share in cash.
“By leveraging our global scale and direct customer relationships in approximately 45 countries, we can help Abaxis accelerate that growth in the United States and worldwide,” Zoetis CEO Juan Ramón Alaix said.
Since the announcement of the acquisition in May, all the conditions to the closing have been met by both companies, including Abaxis shareholder approval of the transaction.
“Together, we can bring more veterinarian customers comprehensive solutions to predict, prevent, detect, and treat disease in animals,” Alaix said.
(May 17) — New Jersey-based Zoetis Inc. announced yesterday that it plans to acquire veterinary diagnostics company Abaxis Inc. in a transaction valued at nearly $2 billion.

Abaxis develops and manufactures diagnostic instruments for veterinary point-of-care services. Zoetis offers veterinary vaccines and medicines as well as diagnostic products, genetic tests, and a host of other products and services.

The veterinary diagnostics category has grown at a compound annual growth rate of 10 percent over the past three years and is now estimated at about $3 billion. In a press release about the merger, Zoetis said it believed sales of veterinary laboratory equipment were outpacing sales in the overall animal health industry, fueled in part by growth outside the United States.

"This acquisition brings Zoetis a company that has a proven, competitive diagnostic platform for growth that we can help to accelerate in the United States and worldwide with our global scale and direct customer relationships in approximately 45 countries," Zoetis CEO Juan Ramón Alaix said in a press release.

Abaxis shareholders will receive $83 a share under the deal, 16 percent higher than the company’s closing price on Tuesday. “Together we can bring more veterinary customers a broader range of products that fit into our comprehensive solutions and innovations, from prediction and early detection of disease in animals to prevention and treatment,” Alaix said.

The deal, set to close by the end of 2018, is expected to bring earnings starting in 2019. It will be funded with cash and new debt.

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