PerkinElmer has signed an agreement with private equity firm New Mountain Capital for the sale of its Applied, Food and Enterprise Services businesses for $2.45bn in cash to allow the company to focus on its high-margin Life Science and Diagnostics businesses.

Subject to receipt of regulatory approvals and other customary closing conditions, the transaction is anticipated to be concluded in the first quarter of next year.

Upon completion of the deal, PerkinElmer ’s business will consist of its Life Sciences and Diagnostics businesses, which will be operated under a new name.

The Analytical, Food and Enterprise Services businesses will retain the PerkinElmer name and brand.

The new Life Sciences and Diagnostics business will focus on expediting innovations and driving advanced research, discovery and improvement for global health.

PerkinElmer president and CEO Prahlad Singh said: “Following the close of the transaction, we will be a pure-play, high growth, high margin Life Sciences and Diagnostics company with unique scale.

“The company’s increased financial strength will support accelerated investment into attractive end markets across science and disease, and drive advanced research, discovery, and improve global health.

“Upon closing of the transaction, I believe both organisations will benefit significantly from increased focus and aligned investment on their unique market opportunities.”

Together, it is estimated that the Life Sciences and Diagnostics businesses will generate nearly $3.3bn in revenue this year. This accounts for about 80% of recurring revenue.

The revenue of the company is expected to grow more than 10% per year.

Last December, PerkinElmer launched the new NEXTFLEX Variant-Seq SARS-CoV-2 Kit v2 to accelerate the detection of Covid-19 virus variants.