Omnicell (OMCL) Said to Receive New $150/Share Offer from Baxter (BAX) - Source

March 11, 2021 3:04 PM EST

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Omnicell, Inc. (NASDAQ: OMCL) is said to have received a new $150 per share takeover offer from Baxter (NYSE: BAX) after turning down a more than $120 per share offer from the would-be suitor late last year, according to a source. Discussions between the two sides are continuing, it was added. The bid would value the pharmacy automation provider at approximately $6.5 billion.

Earlier in the year, Omnicell posted strong fourth-quarter results and raised its 2021 guidance, making the case to investors it is worth more than Baxter’s prior offer.

For the full year 2021, Omnicell expects product bookings to be between $1.090 billion and $1.150 billion. The Company expects total revenues to be between $1.085 billion and $1.105 billion. The Company expects product revenues to be between $770 million and $785 million, and service revenues to be between $315 million and $320 million. The Company expects 2021 non-GAAP EBITDA to be between $228 million and $240 million. The Company expects 2021 non-GAAP earnings to be between $3.40 and $3.60 per share.

Omnicell CEO Randall Lipps said, “We made tremendous progress advancing the autonomous pharmacy as we continued expanding our portfolio and investing in developing a single, cloud-based platform that can connect nearly all of our devices.”

In February, Piper Jaffray upgraded Omnicell to Overweight with a $147 price target, saying COVID-19 exposed “deep underlying flaws” in the U.S. healthcare delivery system,” including “manual and unsophisticated processes that still dominate most health system pharmacies.” They expect the pharmacy to emerge as a budgetary priority for health systems over the next 3-5 years, which benefits Omnicell as it sells the only “software enabled, integrated and end-to-end pharmacy management platform solution on the market.”

Neither Omnicell nor Baxter have responded to a request to comment on the new offer.



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