By Giulia Petroni

Roche Holding AG said Monday that it signed a definitive merger agreement with GenMark Diagnostics Inc. in a deal valued at approximately $1.8 billion on a fully diluted basis.

The Swiss pharmaceutical major said it will commence a tender offer to acquire all outstanding shares of the diagnostic solutions provider at a price of $24.05 a share in an all-cash transaction.

The deal, which has been approved by Roche and GenMark's boards of directors, is expected to close in the second quarter of the year.

"Acquiring GenMark Diagnostics will broaden our molecular diagnostics portfolio to include solutions that can provide life-saving information quickly to patients and their healthcare providers in the fight against infectious diseases," Thomas Schinecker, chief executive officer of Roche Diagnostics, said.

The transaction value of $1.8 billion represents a premium of around 43% to GenMark's closing share price on Feb. 10--the last trading day before speculation emerged about a potential sale.

Following the acquisition, GenMark's will continue to have its main operations in Carlsbad, Calif., according to Roche.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

03-15-21 0251ET