Thermo Fisher Scientific has increased the takeover bid for European genetic testing company Qiagen by approximately $1bn after criticism from investors.

Thermo Fisher will now pay €43 ($49.08) for each share of Qiagen instead of €39 per share price agreed in the original deal.

Including approximately $1.4bn of net debt, the original deal valued Qiagen at approximately $11.5bn. The latest deal values the company at nearly $12.5bn.

The revised agreement also reduces the minimum acceptance threshold of Qiagen’s issued and outstanding share capital from 75% to 66.67%.

It also specifies a $95m expense reimbursement to Thermo Fisher if the minimum acceptance threshold is not met.

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Commenting on the latest development Thermo Fisher Scientific president, chairman and CEO Marc Casper said: “After careful consideration, we have decided to increase our offer for Qiagen to reflect the fair value of the business given the current environment.

“We remain confident that this transaction will create shareholder value and, importantly, provide meaningful benefits to our customers and society by combining our capabilities to combat infectious diseases and other healthcare issues. We continue to look forward to completing the transaction in the first half of 2021.”

The new offer has been approved by the members of Qiagen’s Supervisory Board and Managing Board.

The board also recommended that all Qiagen shareholders accept and tender all of their shares into the offer prior to the end of the acceptance period, which has now been extended to 10 August.

Qiagen CEO Thierry Bernard said: “The rationale for this strategic step is stronger than ever, especially as the value of molecular testing becomes ever more evident.

“This combination is designed to enable Qiagen employees and our portfolio of Sample to Insight solutions to have an even greater impact on society while also delivering significant cash value to our shareholders.”

It is believed that Thermo Fisher raised its bid for Qiagen after Davidson Kempner Capital Management, which owns a 3% stake in Qiagen, refused to tender its shares into the offer calling the offer ‘inadequate’.

Earlier this week, the company signed a strategic partnership agreement with First Genetics to develop next-generation sequencing (NGS)-based diagnostics in Russia.