Affymetrix Agrees to be acquired by Thermo Fisher for $14.00/shr in cash, valuing it at $1.3B
Thermo Fisher Scientific and Affymetrix, a leading provider of cellular and genetic analysis products, announced that their boards of directors have unanimously approved Thermo Fishers acquisition of Affymetrix for $14.00 per share in cash. The transaction represents a purchase price of approximately $1.3 billion.
Affymetrixs eBioscience offering for cellular analysis will enhance Thermo Fishers leading biosciences capabilities. Specifically, the company specializes in a range of antibodies, multiplex RNA, and protein and single-cell assays. These technologies serve the fast-growing flow cytometry market segment as well as new high-growth applications including single-cell biology, immunotherapy and infectious disease research. Affymetrix adds complementary products in genetic analysis that are used in cytogenetics, genotyping and gene expression. The companys innovative microarray platform will strengthen Thermo Fishers presence in certain clinical and applied markets, including reproductive health and agricultural biotechnology. Affymetrix will benefit from Thermo Fishers access to the biopharma industry through its unique customer value proposition, as well as its world-class e-commerce capabilities and extensive customer channels. Thermo Fisher will also significantly extend the geographic reach of Affymetrixs products by leveraging its market presence and infrastructure in Asia-Pacific, particularly China.The transaction is expected to be immediately accretive to Thermo Fishers adjusted EPS, adding $0.10 of accretion in the first full year of ownership. Thermo Fisher expects to realize total synergies of approximately $70 million by year three following the close, consisting of approximately $55 million of cost synergies and approximately $15 million of adjusted operating income1 benefit from revenue-related synergies.
The transaction, which is expected to be completed by the end of the second quarter of 2016, is subject to the approval of Affymetrix shareholders and the satisfaction of customary closing conditions, including applicable regulatory approvals. Thermo Fisher intends to use cash on hand and short-term debt to finance the transaction.
TMO CEO: For shareholders, we expect the transaction to create value by generating attractive financial returns, including immediate accretion to our adjusted EPS.