Zoetis to Buy Veterinary-Diagnostics Company Abaxis for $2 Billion

Date : 05/16/2018 @ 12:53PM
Source : Dow Jones News
Stock : Abaxis, Inc. (delisted) (ABAX)
Quote : 83.0  0.0 (0.00%) @ 7:05AM

Zoetis to Buy Veterinary-Diagnostics Company Abaxis for $2 Billion

Abaxis, Inc. (delisted) (NASDAQ:ABAX)
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By Allison Prang 

Animal-health company Zoetis Inc. has agreed to buy Abaxis Inc., a maker of veterinary-diagnostics equipment, in a deal valued at about $2 billion.

Zoetis has offered $83 a share in cash for Abaxis, about a 16% premium to Abaxis's closing price Tuesday.

The companies said Wednesday the deal would grow Zoetis's presence in veterinary diagnostics, a sector that has had an annual compound growth rate of about 10% for the past three years.

One of the tests Abaxis recently started offering looks for diseases such as heartworm and Lyme disease in dogs. The bulk of the company's revenue in its most recent fiscal year came from its veterinary offerings, while a smaller portion came from other offerings for humans.

In the year ended March 31, Abaxis generated $244.7 million in revenue. It employs more than 580 people.

Zoetis makes veterinary vaccines and medicines and offers diagnostic products, among other things. Last year, the company had $5.3 billion in revenue and employed 9,000 people.

Shares of Abaxis, up 49% in the past 12 months, rose 15% in premarket trading. Shares of Zoetis rose 0.2% premarket on low volume and have risen 38% in the past 12 months.

Write to Allison Prang at allison.prang@wsj.com

 

(END) Dow Jones Newswires

May 16, 2018 08:38 ET (12:38 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.

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