EQT V has signed an agreement to sell Dako to the American listed technology company Agilent Technologies, for a total enterprise value of DKK 12.8 billion. Headquartered in California and listed on the New York Stock Exchange, Agilent Technologies has a market capitalization of around USD 15 billion.

EQT V acquired Dako from the descendants of the company’s founder Niels Harboe and Novo Nordisk in 2007 for an enterprise value of DKK 7.25 billion. A strategy was launched to expand Dako’s global market leading positions and further strengthen customer relationships and sales channels.

Dako is today a leading global player in the anatomic pathology market, which is one of the most attractive diagnostic markets with sustainable long-term and non-cyclical growth rates. Dako has leading positions in all of the high value advanced staining markets with strong brand loyalty established through its industry gold standard portfolio of antibodies and reagents. Dako’s products are sold in more than 100 countries and generate annual sales of DKK 1.9 billion and EBITDA of DKK 0.6 billion.

“Under EQT V’s ownership Dako has seen significant development. Dako’s technology platform has been strengthened through heavy investment and we believe it is in many aspects the most advanced in the industry today. We are pleased that EQT V now can divest a company which is significantly larger and stronger than when it was acquired”, says Morten Hummelmose, Partner in EQT Partners A/S, Investment Advisor to EQT V.

During EQT V’s ownership, Dako increased investment in R&D significantly, resulting in several completed and ongoing launches of groundbreaking technologies in the fight against cancer. Dako has unparalleled experience in companion diagnostics (pharmDx) and is the only IHC/ISH diagnostic company which has taken an IHC pharmDx, in combination with a pharmaceutical partner, all the way through development and FDA approval. Dako believes that its current pharmDx pipeline is the most advanced and strongest in the industry.

The commercial organization of Dako has also been strengthened with significant amounts being invested into Sales & Marketing each year. New sales organizations in Brazil and China have been established and are very successful.

“Investment in R&D and Sales & Marketing has been a priority for us and we now see the results in terms of new instrument platforms and new markets. We believe the combination with Agilent Technologies is very strong from an industrial point of view and with the global distribution reach Agilent Technologies brings to the table, Dako can continue to grow and prosper”, says Lars Holmkvist, CEO of Dako.

The transaction is subject to satisfaction of customary closing conditions.

EQT V has been advised by Goldman Sachs International, Accura and Davis Polk.