Merck and privately held Antelliq Group announced Dec. 14 that they have signed a definitive agreement under which Merck will acquire Antelliq for approximately 2.1 billion euros ($2.37 billion). Antelliq will be a wholly owned and separately operated subsidiary within the Merck Animal Health division.

Antelliq is a leader in digital animal identification, traceability and monitoring solutions, the fastest-growing part of the animal health industry, with 360 million euros in sales in the 12-month period ending Sept. 30, 2018.

“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,” Merck chairman and chief executive officer Kenneth Frazier said. “This acquisition is well aligned with our strategy to generate long-term growth and sustainable value for our customers and shareholders.”

Dr. Stefan Weiskopf, CEO of Antelliq, added, “Merck has a strong and growing animal health business, and we are delighted that our superior offering of technology, products and services, as well as our global relationships, together with Merck, will bring additional value to our customer. With more than 60 years of experience, we are constantly reimagining animal care to improve the quality of life for animals and for the people who care for them.”

With its extensive suite of digitally connected identification and monitoring products, Antelliq is uniquely positioned to support the needs of farmers and veterinarians, the companies noted. The products allow access to real-time, actionable information to help improve livestock management and health outcomes. In addition, Antelliq offers pet owners digitally connected products to help them enhance their pets’ quality of life.

“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 of 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.”

The closing of the transaction is subject to clearance by antitrust and competition law authorities and other customary closing conditions and is expected to close in the second quarter of 2019.