Thermo Buys Affymetrix for $1.3 Billion
Thermo highlighted Affymetrix’s antibody portfolio, multiplex RNA, and protein and single cell assays and their fit with Thermo’s flow cytometry business as well as how they will broaden Thermo product lines for single cell biology, immunotherapy and infectious disease research. Thermo also noted that Affymetrix’s cytogenetics, genotyping and gene expression products will compliment its Genetic Analysis offerings. Thermo plans to extend Affymetrix’s geographic reach and utilize the company’s access to the biopharmaceutical industry. Speaking at the JP Morgan Healthcare Conference, Mr. Casper stated that the acquisition would be financed through debt and cash. Consumables account for 84% of Affymetrix revenues, Services/Other represent 11% and Instruments make up 5%. Affymetrix has experienced a revenue growth turnaround in recent years, with improving profitability through new product segments and end-market opportunities.
Waltham, MA and Santa Clara, CA 1/8/16—Thermo Fisher Scientific has agreed to acquire Affymetrix, a supplier of cellular and genetic analysis products, for $1.3 billion, or $14 per share, a 52.0% premium over the company’s closing price on January 8. Affymetrix generates annual revenues of $350 million. Affymetrix will join Thermo’s Life Science Solutions business, enhancing its Biosciences and Genetic Sciences Divisions. “In biosciences, the company’s antibody portfolio will significantly expand our offering in the fast growing flow cytometry market, and customers will have greater access to these products through our global scale and commercial reach,” stated Thermo President and CEO Marc N. Casper. “In genetic analysis, Affymetrix’s technologies are highly complementary and present new opportunities for us in targeted clinical and applied markets. “ The transaction is expected to be accretive to adjusted EPS by $0.10 in the first full year of ownership. Synergies are expected to total $70 million in the third year, consisting of $55 million of cost synergies and $15 million of synergies related to revenues. The transaction is expected to close in the second quarter. Affymetrix shareholder and regulatory approvals are required.
