Global biopharmaceutical company Merck has made the largest agtech investment on record to date, acquiring Antelliq, a digital livestock tech company, from private equity firm BC Partners for US$2.37 billion.
Based in Vitré, France, and in business for more than 60 years, Antelliq focuses on digital animal identification, traceability, and monitoring solutions.
Over its lifetime, the company has grown to have 22 production sites on five continents, and does business in more than 100 countries. Through helping farmers, veterinarians, and pet owners gain access to critical data that can improve the management, health, and the well-being of livestock and pets, the company has posted sales of 360 million euros (US$410 million) in the 12 months to September 30, 2018.
Through its extensive portfolio of digitally-connected identification and monitoring offerings, Antelliq is uniquely positioned to capitalize upon the fastest growing category of the animal health industry, which is being driven by a growing demand for protein, food traceability, and food safety while also optimizing disease prediction and treatment.
Indeed, deals in animal and livestock-related technologies have been on the rise.
“The same breakthroughs driving the IoT are converging in animal health – digitization, miniaturization of sensors, widespread network access (whether via Bluetooth, Wi-Fi, mobile or satellite technology) and big data computing,” noted Thomas Overbay, D.V.M. and managing director, Covenant Animal Health Partners in the article, The Future of the Internet of Animals shared by GAI News on November 20. “The technology of IoT is becoming better understood, and investors are starting to look at applications in other markets.”
“The animal health industry is rapidly evolving with revolutionary digital solutions to manage the health and well-being of livestock and companion animals,” said Rick DeLuca, president, Merck Animal Health. “Animal identification, animal monitoring and smart data management are critical components of this transformative technology. This acquisition represents yet another way that we will ensure our place as a leader in animal health, with a substantial and sustainable position, including the most innovative, technological solutions to serve our customers. Through our commitment to the Science of Healthier Animals™, we are dedicated to preserving and improving the health, well-being and performance of animals.”
Through the deal, which is expected to close in the second quarter of 2019, Merch will assume Antelliq’s debt totaling 1.15 billion euros (US$1.3 billion), which it plans to pay down upon the closing.
“Merck Animal Health is a leader in the animal health business and has delivered consistent above-market growth driven by a broad portfolio of innovative pharmaceuticals, vaccines and other value-added technologies and services. 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,” said Kenneth C. Frazier, chairman and chief executive officer, Merck. “This acquisition is well aligned with our strategy to generate long-term growth and sustainable value for our customers and shareholders.”
As technologies evolve and mature, there is great potential in wider applications within the animal health and well being space, notes Overbay, saying, “… further afield, there’s research underway to apply facial recognition technology to animals (to identify distress, for example). Same goes for voice recognition – perhaps we can develop enough AI to detect and act upon the emotion and patterns in animal noises. There’s been an uptick in news about animal intelligence – the ability of some smart birds to apply complex economic concepts to get rewards of their choosing, new methods of measuring animal cognition including use of MRIs, and studies tracking the role of evolution and “culture” in migrations.”
-Lynda Kiernan