Cinven, an international private equity firm, has announced its agreement to acquire Elliott Advisors' 10% stake in SYNLAB AG, a leading medical diagnostics provider in Europe. Following this transaction, Elliott will retain an indirect minority stake in SYNLAB, joining existing shareholders including Cinven, Labcorp, and Qatar Holding LLC. The deal is pending regulatory approvals and is expected to finalize in early 2025.
The acquisition will be executed through Ephios Bidco GmbH, a company controlled by Cinven-managed funds, which currently holds approximately 86% of SYNLAB's shares. After the acquisition, Ephios Bidco's ownership will increase to at least 96.09% of the share capital and 97.15% of the voting rights. In light of this, Ephios Bidco has requested a general meeting of SYNLAB's shareholders to discuss a squeeze-out of remaining minority shareholders, offering cash compensation as mandated by German corporate law.
SYNLAB's Management Board will announce the date for the Annual General Meeting where this resolution will be voted on. The squeeze-out will only take effect after shareholder approval and registration with the commercial register. Mathieu Floreani, CEO of SYNLAB, expressed optimism about the deal, highlighting Elliott's continued support as a sign of confidence in SYNLAB's growth potential.
SYNLAB operates in over 20 countries and is recognized for its innovative medical diagnostic services, having conducted around 600 million laboratory tests and generating revenues of €2.64 billion in 2023. Cinven, with a focus on building global companies across various sectors, emphasizes a responsible investment approach.
Elliott Investment Management, managing approximately $69.7 billion in assets, is one of the oldest continuously managed funds, with a diverse investor base including pension plans and sovereign wealth funds.
This acquisition marks a significant step in consolidating SYNLAB's market position and reflects the ongoing trend of private equity involvement in the healthcare sector.
