Fairness opinionsDiagnostics / Life Sciences2026

BIO-TECHNE acquired by Merck: fairness opinion by Goldman Sachs

Announced June 25, 2026 · One-step merger · All cash · DEFM14A filed August 20, 2026
Diagnostics / Life Sciences Life Sciences
Enterprise value
$11B
equity $12B
EV / LTM EBITDA
26.2x
EBITDA $432M · 36% margin
EV / LTM revenue
9.33x
revenue $1.2B
DCF discount rate
9.0%–10.5%
Exit multiple

Deal terms

ConsiderationAll cash
Price per share$73.00
Premium24.0%
Premium basisclosing price of $58.88 on June 24, 2026, last trading day before announcement
StructureOne-step merger
Termination fee$230M (2.0% of equity)
Reverse termination fee$576M
Go-shopNone
Outside date

Implied value per share by method vs. $73.00 offer

Precedent transactions — EV / LTM Adjusted EBITDA (ex-SBC), applied to LTM Adjusted EBITDA (Core) of ~$421 million as of March 31, 2026 $49.00 – $67.00
Discounted cash flow $58.00 – $72.00
Illustrative Present Value of Future Share Price Analysis $45.00 – $74.00
Premia Paid Analysis $65.00 – $86.00

Ranges as disclosed in the banker’s summary of analyses; the red line marks the per-share consideration.

Opinion of Goldman Sachs to the target board

Delivered June 25, 2026 · Fee $106M ($106M contingent on closing)

Discounted cash flow assumptions

Discount rate9.0%–10.5%
BasisWACC derived via capital asset pricing model
Terminal valueExit multiple
Perpetuity growth3.2%–5.4%
Exit multiple13.0x–15.0x terminal year EV / LTM Adjusted EBITDA applied to FY2036E Adjusted EBITDA
Projection periodApril 1, 2026 to June 30, 2036
Projections usedManagement Projections
Implied value per share$58.00–$72.00

Mid-year convention; discounted to present value as of March 31, 2026. Enterprise value adjusted for total debt, cash, investment in Spear Bio, divestiture-related notes receivable and market value of MDxHealth equity investment; fully diluted shares as of June 19, 2026 using treasury stock method. Implied perpetuity growth rates of 3.2%-5.4%.

Selected public companies (6)

Agilent Technologies, Inc. · Bruker Corporation · Danaher Corporation · QIAGEN N.V. · Revvity, Inc. · Thermo Fisher Scientific Inc.

MultiplePeer lowPeer medianPeer highRange appliedImplied per share
EV / LTM Adjusted EBITDA (ex-SBC) - average over LTM ended 6/24/2616.8x
EV / LTM Adjusted EBITDA (ex-SBC) - average over LTM ended 6/24/26, median excluding Thermo Fisher and Danaher15.3x
EV / LTM Adjusted EBITDA (ex-SBC) - CY2026 low14.2x
EV / LTM Adjusted EBITDA (ex-SBC) - CY2026 low, median excluding Thermo Fisher and Danaher13.1x
Bio-Techne EV / LTM Adjusted EBITDA (ex-SBC) - average over LTM ended 6/24/2620.4x
Bio-Techne EV / LTM Adjusted EBITDA (ex-SBC) - CY2026 low15.4x

Selected precedent transactions (6)

DateTargetAcquirerMultiple
2025-07Becton, Dickinson and Company (BD Biosciences & Diagnostic Solutions)Waters Corporation19.8x Implied EV / LTM Adjusted EBITDA (ex-SBC)
2025-04Biotage ABKKR & Co. Inc.24.5x Implied EV / LTM Adjusted EBITDA (ex-SBC)
2019-02General Electric Company (GE Biopharma)Danaher Corporation17.5x Implied EV / LTM Adjusted EBITDA (ex-SBC)
2018-03Integrated DNA Technologies, Inc.Danaher Corporation24.2x Implied EV / LTM Adjusted EBITDA (ex-SBC)
2016-05FEI CompanyThermo Fisher Scientific Inc.17.7x Implied EV / LTM Adjusted EBITDA (ex-SBC)
2016-01Affymetrix, Inc.Thermo Fisher Scientific Inc.20.4x Implied EV / LTM Adjusted EBITDA (ex-SBC)
MultipleLowMedianHighRange appliedImplied per share
EV / LTM Adjusted EBITDA (ex-SBC), applied to LTM Adjusted EBITDA (Core) of ~$421 million as of March 31, 202617.5x24.5x 17.5x–24.5x $49.00–$67.00

Other analyses

AnalysisSummaryImplied per share
Illustrative Present Value of Future Share Price AnalysisApplied EV/NTM Adjusted EBITDA multiples of 15.0x to 23.0x to estimated Adjusted EBITDA for fiscal years ending June 30, 2027 through June 30, 2029 (assuming illustrative annualized impact of the acquisition of the remaining 80.1% of Wilson Wolf in FY2028), adjusted for net debt and other items, added cumulative dividends per share, and discounted to March 31, 2026 at a 10.3% cost of equity.$45.00–$74.00
Premia Paid AnalysisReviewed 250 all-cash acquisitions of public companies announced January 1, 2021 through June 24, 2026 (excluding biotech) with enterprise values of $5-$30 billion; median premium 28%, 25th percentile 15%, 75th percentile 47%. Applied 15%-47% to the June 24, 2026 closing price of $58.88 to derive $67-$86 per share, and to the Hypothetical Undisturbed Share Price of $56.71 to derive $65-$83 per share.$65.00–$86.00
Historical Stock Trading Analysis$73.00 represented a 35% premium to the June 12, 2026 price of $54.00 (last trading day before press reports of the Ananym Letter), 29% to the Hypothetical Undisturbed Share Price of $56.71, 24% to the June 24, 2026 price of $58.88, 43% to the 30-day VWAP of $50.88, 41% to the 60-day VWAP of $51.92 and 38% to the 90-day VWAP of $52.73.

Engagement letter dated May 27, 2026; transaction fee estimated at approximately $106 million, all contingent upon consummation of the Merger. Oral opinion rendered June 24, 2026, confirmed in writing June 25, 2026.

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Management projections

Projection yearYear 1Year 2Year 3Year 4Year 5CAGR
Revenue$1.3B$1.4B$1.6B$1.8B$2.0B12.2%
Revenue growth5.9%12.7%13.8%11.3%11.3%
EBITDA$459M$531M$622M$711M$811M15.3%
EBITDA growth6.3%15.7%17.1%14.3%14.1%
EBITDA margin36%37%38%39%40%
Implied EV / EBITDA24.6x21.3x18.2x15.9x13.9x

Year-1 growth is against LTM at announcement ($1.2B revenue, $432M EBITDA); later years are year over year.

Goldman Sachs used internal financial analyses and forecasts prepared by Bio-Techne management (the "Management Projections"), authorized for its use by the Board, covering unlevered free cash flow from April 1, 2026 through June 30, 2036 (fiscal years ending June 30). The projections included Adjusted EBITDA estimates for fiscal years 2027-2029 and a terminal-year FY2036 Adjusted EBITDA estimate, and assumed an illustrative annualized impact of Bio-Techne's acquisition of the remaining 80.1% of Wilson Wolf in fiscal 2028. Bio-Techne's LTM Adjusted EBITDA (Core) as of March 31, 2026 was approximately $421 million.

Process notes

Single financial advisor (Goldman Sachs) to the Bio-Techne board; oral opinion June 24, 2026 confirmed in writing June 25, 2026. Competitive process: Parent's May 18 IOI at $67.00/share was raised to $73.00 on June 21 after a limited market check of Party A and Party B; Party B bid $68.00 then $71.00 per share; Board had given $74.00 price guidance. Activist involvement (Ananym Letter reported in media June 15, 2026) led Goldman Sachs to compute a Hypothetical Undisturbed Share Price of $56.71. Negotiated fee structure: 2.0% target termination fee ($230.455M) and 5.0% reverse termination fee ($576.14M, ~5.0% of aggregate equity value, implying roughly $11.5 billion equity value). Goldman Sachs disclosed existing lending relationships with both Bio-Techne and Parent and ~$6 million of fees from Parent over the prior two years.

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