(Reuters) -Medical equipment maker Danaher Corp said on Thursday it would buy privately held biotech company Aldevron in an all-cash deal for about $9.6 billion, snapping up a supplier to COVID-19 vaccine maker Moderna Inc.
U.S.-based Aldevron has a contract to supply Moderna plasmid DNA required to make the drugmaker’s mRNA vaccine, which has been authorized for use in more than 40 countries including the United States.
Danaher also has an agreement with the U.S. government to expand the manufacturing of products needed to make COVID-19 vaccines.
Aldevron, majority owned by Swedish fund EQT, also produces mRNA and proteins for biotechnology and pharmaceutical customers across research, clinical and commercial fields.
North Dakota-headquartered Aldevron, which has about 600 employees, will operate as a standalone company within its Life Sciences segment, Danaher said.
Danaher said it expects to finance the deal using cash on hand and/or proceeds from issuing commercial paper.
Morgan Stanley was the exclusive financial adviser to Aldevron, while Simpson Thacher & Bartlett LLP provided legal counsel.
Danaher’s shares rose about 4% in morning trading.
(Reporting by Dania Nadeem in Bengaluru; Editing by Amy Caren Daniel and Sriraj Kalluvila)
