Waters Corporation and BD (Becton, Dickinson and Company) have announced a landmark agreement to merge BD’s Biosciences & Diagnostic Solutions business with Waters through a Reverse Morris Trust transaction valued at approximately $17.5 billion. This strategic move brings together two industry leaders with complementary technologies and market strengths, creating a life science and diagnostics powerhouse focused on regulated, high-volume testing. The combined company, expected to generate around $6.5 billion in pro forma revenue by 2025, will offer an integrated portfolio of liquid chromatography, mass spectrometry, flow cytometry, and molecular diagnostics—positioning it to address complex diagnostic needs across the pharmaceutical, clinical, and research sectors.
The rationale behind the agreement is rooted in aligning expertise and accelerating growth in high-potential areas such as bioseparations, bioanalytical characterization, and multiplex diagnostics. Waters brings a strong foundation in analytical instrumentation and software, while BD contributes deep clinical and regulatory experience, particularly in flow cytometry and diagnostics. Together, the companies will serve a $40 billion addressable market, increase recurring revenue streams, and unlock significant synergies. The combined entity also aims to expand access to automation in diagnostic laboratories, improve biologics quality control, and enhance innovation in diagnostic workflows through integrated informatics and consumables.
Looking ahead, the transaction is expected to be accretive to adjusted EPS in its first year post-closing and deliver high-single-digit revenue growth and mid-teens earnings growth annually through 2030. With pro forma revenues projected to reach $9 billion and EBITDA at $3.3 billion by the end of the decade, the newly formed company is poised to be a global leader in life sciences and diagnostics innovation. This merger not only accelerates Waters’ long-term transformation strategy but also redefines industry benchmarks by combining operational excellence, R&D investment, and a customer-centric culture that prioritizes scalable, high-impact diagnostic solutions.
MedTech Spectrum's Summary
Strategic Synergy for Market Expansion: The merger of BD’s Biosciences & Diagnostic Solutions business with Waters Corporation creates a powerful entity positioned to lead in regulated, high-volume life science and diagnostic testing—doubling Waters’ total addressable market to approximately $40 billion.
Enhanced Innovation and Recurring Revenue: By combining complementary technologies in flow cytometry, LC-MS, and diagnostics, the deal accelerates growth into high-demand sectors like bioseparations and molecular diagnostics while increasing recurring revenue to over 70% of total income.
Long-Term Growth and Financial Strength: Projected to generate $9 billion in revenue and $3.3 billion in EBITDA by 2030, the transaction strengthens both companies’ global reach, operational capabilities, and shareholder value—cementing their leadership in next-generation diagnostics and precision medicine.
