Will strengthen firm's leadership in biosciences and create new opportunities in genetic analysis
Thermo Fisher Scientific is to buy Affymetrix, a provider of cellular and genetic analysis products, for US$14 per share in cash, or approximately $1.3bn.
Affymetrix’s technologies enable parallel and multiplex analysis of biological systems at the cellular, protein and genetic level, facilitating the transition of research tools into clinical and applied markets.
The company’s products are used in life sciences and translational research, molecular diagnostics, reproductive health and agricultural biotechnology.
Based in Santa Clara, California, US, Affymetrix employs approximately 1,100 people worldwide and maintains sales and distribution operations primarily in the US, Europe and Asia. The business, which has annual revenues of approximately $350m, will be integrated into Thermo Fisher’s Life Sciences Solutions Segment.
Marc Casper, President and Chief Executive of Thermo Fisher Scientific said the acquisition would 'strengthen our leadership in biosciences and create new market opportunities for us in genetic analysis'.
He added that in biosciences, the antibody portfolio of Affymetrix would significantly expand Thermo Fisher's offering in the fast-growing flow cytometry market, and customers would have greater access to these products through the company's global scale and commercial reach.
In genetic analysis, Affymetrix’s technologies present new opportunities for Thermo Fisher in targeted clinical and applied markets.'
Frank Witney, President and Chief Executive of Affymetrix, added that joining Thermo Fisher will enable the company to strengthen its position in high-growth markets such as single-cell biology, reproductive health and AgBio.
Thermo Fisher expects to realise total synergies of approximately $70m by year three following the close, including approximately $55m of cost synergies and approximately $15m of adjusted operating income benefit from revenue-related synergies.
The transaction is expected to be completed by the end of the second quarter of 2016 and is subject to the approval of Affymetrix shareholders and the satisfaction of customary closing conditions.