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Synlab IPO on the cards: Reuters
Posted on Thursday, 13 February 2020 09:00
German medical diagnostics firm Synlab could be on the verge of going public after sources close to the situation told Reuters that private equity owner Cinven has initiated a listing process.
The people said Lilja has been appointed to advise on the process and noted that an initial public offering (IPO) could take place during the second half of this year.
According to the sources, who did not wish to be identified, Cinven is likely to run a dual-track process and is simultaneously keeping its eyes peeled for prospective acquirors, with Advent, Bain, Carlyle and EQT among those named in connection with a potential deal.
They added that if a takeover of the business goes ahead, it could be worth EUR 5.50 billion.
Three separate sources told Reuters that Apax Partners is also interested and is currently preparing a EUR 4.00 billion offer.
According to those people, should the investor be successful in buying Synlabs, it could look to merge it into Swiss portfolio company Unilabs, thereby creating a European laboratory powerhouse.
None of the parties involved have commented on the report.
Synlab’s offering includes the full range of medical laboratory services for doctors, clinics and the pharmaceutical segment.
The firm claims to be the European leader in clinical laboratory services, with a presence spanning 40 countries across four continents.
It employs in excess of 20,000 people.
This is not the first time Synlab has been linked with an IPO; back in January 2013, there were reports that it could look to go public in 2014.
This was followed by an October 2016 report by Milano Finanza, which stated that the company could be considering a flotation.
Cinven has owned the firm since acquiring a 72.0 per cent shareholding from BC Partners for EUR 1.80 billion in October 2015.
Since then, Synlab has carried out a number of acquisitions of its own; according to Zephyr, the M&A database published by Bureau van Dijk, the most recent of these closed in February 2019, when it bought Danish medical data software platform developer DMDD for an undisclosed sum.
© Zephus Ltd