Ohio-based life science company Meridian Bioscience (NASDAQ:VIVO) is generating some buzz today as the company revealed that it will be acquired by SD Biosensor and SJL Partners. Additionally, VIVO stock is newsworthy because Meridian Bioscience just released its preliminary results for fiscal-year 2022’s third quarter.
To put it simply, Meridian Bioscience’s main business is supplying diagnostic test kits. This was a hot market when Covid-19 first spread a couple of years ago. Nowadays, though, some skeptical traders might wonder whether there’s a robust market for medical test kits.
At least two companies doesn’t seem too worried about this, though. In a fresh press release, Meridian Bioscience revealed that it has agreed to be bought out by in-vitro diagnostics company SD Biosensor and Korea-based private equity investment manager SJL Partners.
To be more precise, a newly formed affiliate vehicle of those two companies will acquire Meridian in an all-cash transaction. The value of this deal is set at roughly $1.53 billion. Meridian’s shareholders need not worry, as they will receive $34 per share in cash as a result of the agreement.
What’s Happening With VIVO Stock?
As you might expect, Meridian Bioscience CEO Jack Kenny put a positive spin on the buyout news. He believe the transaction will enhance Meridian’s “ability to serve customers as we navigate the decline in COVID-19 testing demand.”
The reaction on Wall Street was muted this morning, however, as VIVO stock didn’t move much on the news. That’s interesting, as there’s not just one catalyst in play, but two of them.
Along with the disclosure of the buyout transaction, Meridian Bioscience also just released a financial update for the third quarter of fiscal 2022. For that quarter, Meridian’s preliminary unaudited net revenues are anticipated to be between $66 million and $69 million.
Is that not enough to impress the trading community today? Sometimes, investors just aren’t in a mood to move a stock price — and that may be the case for now, even while Meridian Bioscience releases two timely and impactful updates.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.