NEW YORK, June 25, 2026, 10:05 EDT
- Bio-Techne was at $70.17 early Thursday, trading 3.9% under Merck KGaA’s $73 per share cash offer.
- By 9:51 a.m. EDT, volume hit 15.42 million shares, topping the most recent short-interest tally.
- Merck is putting an $11.3 billion enterprise value on Bio-Techne, setting the multiple at less than 9.4 times expected fiscal 2025 sales. That’s based on Bio-Techne’s own sales number.
Bio-Techne Corporation NASDAQ:TECH moved into merger-arb territory Thursday morning after Germany’s Merck KGaA (ETR:MRK) said it would acquire the life-sciences tools company for $73 per share in cash. Shares traded at $70.17 at 9:51 a.m. EDT, up 19.18%, leaving a $2.83 spread to the offer.
The spread is in focus since the payout won’t come soon. The deal still requires Bio-Techne shareholders and several regulatory signoffs. Merck expects to close late 2026 or early 2027. The company is using a mix of cash and new debt for the funding.
Bio-Techne jumped around 19.1% in available quotes, beating the broader health-care sector. The iShares U.S. Medical Devices ETF (NYSEARCA:IHI) added 1.3%. Health Care Select Sector SPDR Fund (NYSEARCA:XLV) climbed 1.6%, and SPDR S&P Biotech ETF (NYSEARCA:XBI) was up 1.7%.
Volume jumped. As of 9:51 a.m., traders had moved 15.42 million shares, already at 574% of the 65-day average and topping the last reported short interest figure of 13.85 million.
This doesn’t show short covering. It says the deal pushed a full day’s worth of turnover into the first half hour. For holders, the stock price now reflects deal timing and approvals.
Merck’s $73 bid is a 36% premium to Bio-Techne’s one-month VWAP, but it works out to just 24% above Wednesday’s close, according to Reuters. That suggests Bio-Techne’s one-month VWAP is about $53.68, or 9.7% below where shares closed Wednesday at $58.88. The premium isn’t as big as the top-line number suggests.
Valuation comes into play. The premium on the deal wasn’t fully tacked onto a flat price—some of that premium had already been built into the shares ahead of the news.
Merck is paying $11.3 billion in enterprise value for Bio-Techne, which comes out to less than 9.4 times Bio-Techne’s projected sales for fiscal 2025, based on the company’s “more than $1.2 billion” estimate. Merck is also aiming for annual cost savings of 140 million euros, or about $159 million using the Reuters rate. That’s around 1.4% of the total enterprise value. Merck Group
Merck CEO Kai Beckmann said Bio-Techne is an “outstanding fit.” Jean-Charles Wirth, who leads Merck’s Life Science business, said the move “adds capabilities.” Bio-Techne Chairman Robert V. Baumgartner called the deal a way to “deliver substantial, near-term cash value” for shareholders. Merck Group
Wirth told reporters Bio-Techne adds 6,000 proteins and 425,000 antibodies, calling it a “big, big plus” for customers. Leerink’s Puneet Souda said Merck looks set to pick up an “attractive asset with strong long-term potential,” according to Reuters. Reuters
Evercore ISI’s Daniel Markowitz called TECH “an attractive asset,” but some analysts discussed if the price missed value. William Blair’s Matt Larew told Investor’s Business Daily the valuation was “a bit disappointing,” adding he didn’t see another bidder. Investors.com
Merger-arb investors watch the spread, not the trailing earnings numbers. The stock at $70.17 gives about a 4.0% gross return to the $73 cash offer, before figuring in fees, funding, or taxes. If the spread gets wider, it suggests more doubt on the deal closing.
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