Mizuho says $100 per share takeout price for Exact Sciences ‘feasible’

Mizuho says a potential acquisition of Exact Sciences (EXAS) would make strategic sense for Abbott (ABT). Exact has a “sizable” global diagnostics position and “untapped upside potential” from the recent Cologard Plus launch, the analyst tells investors in a research note. The deal also offers potential synergies across the U.S. primary care channel and outside the U.S. markets, contends Mizuho. The firm’s initial merger math calls for an all-cash deal priced at $100 per Exact share. It sees a path to deal break-even by year two and 9-12% return on invested capital within six years. This suggests a levered take-out in the $100 per share range “is certainly feasible,” contends Mizuho. Exact Sciences closed Wednesday up 24%, or $16.50, to $86.18.