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Thermo Fisher Scientific to Acquire Cellular, Genetic Analysis Products Firm Affymetrix for USD 1.3bn
Monday 11 January 2016

11 January 2016 - The boards of US-based life science company Thermo Fisher Scientific Inc. (NYSE: TMO) and Affymetrix Inc. (NASDAQ: AFFX), a provider of cellular and genetic analysis products, have unanimously approved Thermo Fisher's acquisition of Affymetrix for 14.00 per share in cash, the companies said.

This transaction represents a purchase price of approximately USD 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 by customers working in life sciences and translational research, molecular diagnostics, reproductive health and agricultural biotechnology.

Based in Santa Clara, California, Affymetrix has approximately 1,100 employees 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.

Thermo Fisher said the deal significantly expands its antibody portfolio to strengthen leadership in biosciences. Affymetrix's eBioscience offering for cellular analysis will enhance Thermo Fisher's leading biosciences capabilities.

Specifically, the company specialises 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 also adds complementary products in genetic analysis that are used in cytogenetics, genotyping and gene expression.

The company's innovative microarray platform will strengthen Thermo Fisher's presence in certain clinical and applied markets, including reproductive health and agricultural biotechnology.

Affymetrix will benefit from Thermo Fisher's access to the biopharma industry through its unique customer value proposition, as well as its e-commerce capabilities and extensive customer channels.

Thermo Fisher will also significantly extend the geographic reach of Affymetrix's products by leveraging its market presence and infrastructure in Asia-Pacific, particularly China.

The transaction is expected to be immediately accretive to Thermo Fisher's adjusted EPS1, adding 0.10 of accretion in the first full year of ownership.

Thermo Fisher expects to realise total synergies of approximately USD 70m by year three following the close, consisting of approximately 55 m of cost synergies and approximately USD 15m of adjusted operating income1 benefit from revenue-related synergies.

The transaction, which is expected to be completed by the end of 2Q16, 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.

JP Morgan is acting as financial advisor to Thermo Fisher, and Wachtell, Lipton, Rosen and Katz is serving as legal counsel. Morgan Stanley is acting as financial advisor to Affymetrix, and Davis, Polk and Wardwell LLP is serving as legal counsel.
Date Published: 11/01/2016
Target: Affymetrix Inc
Country: USA
Deal Size: 1.3bn (USD)
Sector: Biotechnology
Type: Corporate acquisition
Financing: Cash
Status: Agreed
Buyer: Thermo Fisher Scientific Inc
Buyer Advisor: JP Morgan , Wachtell, Lipton, Rosen and Katz