Quidel Announces Stockholder Approval of Ortho Acquisition and Business Combination

Rhea-AI Summary

Quidel Corporation (NASDAQ: QDEL) announced that its acquisition of Ortho Clinical Diagnostics Holdings plc has been approved by stockholders at a Special Meeting on May 16, 2022. The transaction is expected to close on May 27, 2022, pending regulatory approvals. Under the agreement, Ortho shareholders will receive $7.14 in cash and 0.1055 shares of the combined company for each Ortho share. Post-transaction, Quidel stockholders will own approximately 62% of the combined entity. This merger aims to enhance diagnostic solutions and create long-term value for shareholders.

Positive

• Acquisition approval may lead to expanded market presence and product offerings.
• Expected synergies from combining operations could drive revenue growth and innovation.

Negative

• Dependency on multiple regulatory approvals could delay the closing of the transaction.
• Integration challenges may arise, potentially impacting operational efficiency.

SAN DIEGO--(BUSINESS WIRE)-- Quidel Corporation (Nasdaq: QDEL) (“Quidel”), a provider of rapid diagnostic testing solutions, cellular-based virology assays and molecular diagnostic systems, announced today that the previously announced acquisition of Ortho Clinical Diagnostics Holdings plc (“Ortho”) by Quidel and subsequent business combination were approved by Quidel’s stockholders at Quidel’s Special Meeting on May 16, 2022.

Subject to sanction of a scheme of arrangement to be undertaken by Ortho under Part 26 of the UK Companies Act 2006 (the “Ortho Scheme”) by the High Court of Justice of England and Wales (the “Court”) and the delivery of the order of the Court sanctioning the Ortho Scheme to the registrar and the satisfaction of other customary closing conditions, Quidel will acquire Ortho, and Quidel and Ortho will become wholly owned subsidiaries of the combined company, upon the closing of the transaction. The transaction is expected to close on May 27, 2022. Following completion of the transaction, shares of the combined company will trade on the Nasdaq Global Select Market under the symbol "QDEL."

“We are incredibly pleased to have achieved this milestone and would like to thank all of our stockholders for their show of support. There is a lot of excitement across our teams about the opportunities that the combined company is expected to create, delivering innovative diagnostic solutions to our customers as well as the value that we plan to provide our shareholders. We look forward to closing this transaction in the coming weeks and continue our work of improving patient outcomes across the globe,” said Douglas Bryant, President and Chief Executive Officer of Quidel.

Transaction Summary

Under the terms of the agreement by which Quidel will acquire Ortho, Ortho shareholders will receive $7.14 in cash and 0.1055 shares of the combined company common stock for each Ortho common share. Quidel stockholders will receive one share of the combined company common stock for each Quidel common share. If the transaction is completed, Quidel stockholders are expected to own approximately 62% of the combined company and Ortho shareholders are expected to own approximately 38% of the combined company.

About Quidel Corporation

Quidel Corporation (Nasdaq: QDEL) is a leading manufacturer of diagnostic solutions at the point of care, delivering a continuum of rapid testing technologies that further improve the quality of health care throughout the globe. An innovator for over 40 years in the medical device industry, Quidel pioneered the first FDA-cleared point-of-care test for influenza in 1999 and was the first to market a rapid SARS-CoV-2 antigen test in the U.S. Under trusted brand names Sofia®, Solana®, Lyra®, Triage® and QuickVue®, Quidel’s comprehensive product portfolio includes tests for a wide range of infectious diseases, cardiac and autoimmune biomarkers, as well as a host of products to detect COVID-19. Quidel’s mission is to provide patients with immediate and frequent access to highly accurate, affordable testing for the good of our families, our communities and the world. For more information about Quidel, visit quidel.com.

View our story told by our people at www.quidel.com/ourstory.

Where You Can Find Additional Information

In connection with the proposed business combination transaction among Quidel, Ortho and Coronado Topco, Inc. (“Topco”), Topco has filed a registration statement on Form S-4 (File No. 333-262434) with the Securities and Exchange Commission (the “Commission”) that contains a definitive joint proxy statement/prospectus and other relevant documents concerning the proposed transaction. The registration statement, as amended, was declared effective by the Commission on April 11, 2022. Each of Quidel and Ortho commenced mailing copies of the definitive joint proxy statement/prospectus to stockholders of Quidel and Ortho, respectively, on or about April 11, 2022. Quidel and Ortho may also file other documents with the Commission regarding the proposed transaction. This communication is not a substitute for the joint proxy statement/prospectus or registration statement or for any other document that Quidel and Ortho have filed or may file with the Commission in connection with the proposed transaction. YOU ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND THE OTHER RELEVANT DOCUMENTS FILED WITH THE COMMISSION (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT QUIDEL, ORTHO AND THE PROPOSED TRANSACTION. The joint proxy statement/prospectus and the other documents filed with the Commission may be obtained free of charge at the Commission’s website, www.sec.gov. In addition, you may obtain free copies of the joint proxy statement/prospectus and the other documents filed by Quidel and Ortho with the Commission by requesting them in writing from Quidel Corporation, 9975 Summers Ridge Road, San Diego, California 92121, Attention: Investor Relations, or by telephone at 858-646-8023, or from Ortho Clinical Diagnostics Holdings plc, 1001 Route 202, Raritan, New Jersey 08869, Attention: Investor Relations, or by directing a written request to SVC Ortho-SVC@SARDVERB.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements and other forward-looking statements in this press release by words such as “may,” “will,” “would,” “expect,” “anticipate,” “believe,” “estimate,” “plan,” “intend,” “continue,” or similar words, expressions or the negative of such terms or other comparable terminology. These statements include, but are not limited to, our expectations regarding the timing for and consummation of the closing of the transaction, the benefits expected from the combination and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of Quidel’s and Ortho’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements.

The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: failure to complete the proposed business combination transaction on the proposed terms or on the anticipated timeline, or at all, including risks and uncertainties related to securing the necessary regulatory approvals, the final approval by Ortho shareholders, the sanction of the High Court of Justice of England and Wales and satisfaction of other closing conditions to consummate the proposed transaction; the occurrence of any event, change or other circumstance that could give rise to the termination of the definitive transaction agreement relating to the proposed business combination transaction; the challenges and costs of closing, integrating, restructuring and achieving anticipated synergies; the ability to retain key employees; and other economic, business, competitive, and/or regulatory factors affecting the businesses of Quidel and Ortho generally. Additional risks and factors are identified under “Risk Factors” in the joint proxy statement/prospectus and in Quidel’s Annual Report on Form 10-K filed on February 18, 2022 and subsequent reports filed with the Commission.

You should not rely upon forward-looking statements as predictions of future events because these statements are based on assumptions that may not come true and are speculative by their nature. Neither Quidel nor Ortho undertakes an obligation to update any of the forward-looking information included in this press release, whether as a result of new information, future events, changed expectations or otherwise, except as required by law.

The City Code on Takeovers and Mergers

The City Code on Takeovers and Mergers does not apply to the proposed business combination.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220516005936/en/

Quidel Contact:

Quidel Corporation

Randy Steward

Chief Financial Officer

858.552.7931

Media and Investors Contact:

Quidel Corporation

Ruben Argueta

858.646.8023

rargueta@quidel.com

Source: Quidel Corporation

FAQ

What are the details of the Quidel acquisition of Ortho Clinical Diagnostics?

Quidel will acquire Ortho for $7.14 in cash and 0.1055 shares of the combined company for each Ortho share. Quidel stockholders will own 62% of the combined entity.

When is the expected closing date for the Quidel and Ortho transaction?

The transaction is expected to close on May 27, 2022, pending regulatory approvals.

How will the acquisition of Ortho benefit Quidel shareholders?

The acquisition is expected to create synergies, enhance product offerings, and drive revenue growth, potentially increasing shareholder value.

What risks are associated with the Quidel and Ortho merger?

Risks include delays in regulatory approvals and potential integration challenges that could impact operational efficiency.