MSD and Antelliq Group announced that they have signed a definitive agreement under which MSD will acquire Antelliq from funds advised by BC Partners.

Antelliq will now be a wholly owned and separately operated subsidiary within the MSD Animal Health Division.

MSD will make a payment of approximately €2.1 billion to acquire all outstanding shares of Antelliq and will assume Antelliq’s debt of €1.15 billion, which it intends to repay shortly after the deal is finalised.

Antelliq is a company that specialises in digital animal identification, traceability and monitoring solutions – said to be the fastest growing part of the animal health industry – with €360 million in sales in the 12-month period ending September 30, 2018.

These solutions – aimed at veterinarians, farmers and pet owners – gather critical data to improve management, health and well-being of livestock and pets.

According to a statement from MSD Animal Health, identification and monitoring technologies will help optimise disease prediction and treatment and this acquisition will provide MSD Animal Health with a large, established customer base in both areas.

The statement outlined that the increasing use of digital technology in animal agriculture is driven by the growing demand for protein, food traceability and food safety.

Kenneth C. Frazier, chairman and chief executive officer at MSD, said: “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.

“With its extensive suite of digitally-connected identification and monitoring products, Antelliq is uniquely positioned to support the needs of farmers and veterinarians.”

Continuing, he explained: “These products allow access to real-time, actionable information to help improve livestock management and health outcomes.”

Rick DeLuca, MSD Animal Health’s president, outlined: “The animal health industry is rapidly evolving with revolutionary digital solutions to manage the health and well-being of livestock and companion animals.

Animal identification, animal monitoring and smart data management are all critical components of this transformative technology.

The closing of the transaction is subject to clearance by antitrust and competition law authorities as well as other customary closing conditions; it is expected to close in the second quarter of 2019.

MSD was represented by Barclays and Centerview Partners and Antelliq was represented by Goldman Sachs International and Rothschild & Co.