Merck to Acquire Animal Tracking and Monitoring Company

Merck [NYSE:MRK] and privately held Antelliq Group announced on 12/14/18 that the companies have signed a definitive agreement under which Merck will acquire Antelliq from funds advised by BC Partners. Antelliq will be a wholly owned and separately operated subsidiary within the Merck Animal Health Division. Merck will make a cash payment of approximately 2.1 billion euros to acquire all outstanding shares of Antelliq and will assume Antelliq’s debt of 1.15 billion euros, which it intends to repay shortly after the closing of the acquisition.

Antelliq is a leader in digital animal identification, traceability and monitoring solutions, the fastest growing part of the animal health industry, with 360 million euros in sales in the 12-month period ending Sept. 30, 2018. These solutions help veterinarians, farmers and pet owners gather critical data to improve management, health and well-being of livestock and pets. The increasing use of digital technology in animal agriculture is driven by the growing demand for protein, food traceability and food safety. Identification and monitoring technologies will help optimize disease prediction and treatment and this acquisition will provide Merck Animal Health with a large, established customer base in both areas.

“Merck Animal Health is a leader in the animal health business and has delivered consistent above-market growth driven by a broad portfolio of innovative pharmaceuticals, vaccines and other value-added technologies and services. Antelliq’s people and products complement this portfolio by adding market-leading digital products, extending the range of solutions we can provide our customers and further driving the growth of our business,” said Kenneth C. Frazier, chairman and chief executive officer, Merck. “This acquisition is well aligned with our strategy to generate long-term growth and sustainable value for our customers and shareholders.”

With its extensive suite of digitally connected identification and monitoring products, Antelliq is uniquely positioned to support the needs of farmers and veterinarians. These products allow access to real-time, actionable information to help improve livestock management and health outcomes. In addition, Antelliq offers pet owners digitally connected products to help them enhance their pets’ quality of life.

“The animal health industry is rapidly evolving with revolutionary digital solutions to manage the health and well-being of livestock and companion animals,” said Rick DeLuca, president, Merck Animal Health. “Animal identification, animal monitoring and smart data management are critical components of this transformative technology. This acquisition represents yet another way that we will ensure our place as a leader in animal health, with a substantial and sustainable position, including the most innovative, technological solutions to serve our customers. Through our commitment to the Science of Healthier Animals™, we are dedicated to preserving and improving the health, well-being and performance of animals.”

Antelliq is the world’s leading animal intelligence group, providing devices for animal identification, monitoring, and traceability. Their monitoring solutions deliver smart data products and services for the management and wellbeing of livestock, fish and pets. For over 60 years they have been satisfying customer needs in over 100 countries, supported by 22 production sites, spanning five continents. Antelliq has four regional innovation centers and many brands working collaboratively to address some of the world’s most pressing challenges: supporting farmers with real-time actionable information, providing a deeper connection with pets, and supporting conservation.