Thermo Fisher Scientific to acquire Affymetrix

Expands portfolio of antibodies and assays for high-growth flow cytometry and single-cell biology applications

12-Jan-2016 - USA

Thermo Fisher Scientific Inc. and Affymetrix Inc. announced that their boards of directors have unanimously approved Thermo Fisher’s acquisition of Affymetrix for $14.00 per share in cash. The transaction represents a purchase price of approximately $1.3 billion.

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 U.S., Europe and Asia. The business, which has annual revenues of approximately $350 million, will be integrated into Thermo Fisher’s Life Sciences Solutions Segment.

“The acquisition of Affymetrix will strengthen our leadership in biosciences and create new market opportunities for us in genetic analysis,” said Marc N. Casper, president and chief executive officer of Thermo Fisher Scientific. “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. In genetic analysis, Affymetrix’s technologies are highly complementary and present new opportunities for us in targeted clinical and applied markets. For shareholders, we expect the transaction to create value by generating attractive financial returns, including immediate accretion to our adjusted EPS.”

Benefits of the Transaction

Significantly Expands Antibody Portfolio to Strengthen Leadership in Biosciences.
Affymetrix’s eBioscience offering for cellular analysis will enhance Thermo Fisher’s 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.

Adds Genetic Analysis Capabilities Serving Clinical and Applied Markets.

Affymetrix adds complementary products in genetic analysis that are used in cytogenetics, genotyping and gene expression. The company’s microarray platform will strengthen Thermo Fisher’s presence in certain clinical and applied markets, including reproductive health and agricultural biotechnology.

Offers Opportunity to Leverage Commercial and Geographic Scale.

Affymetrix will benefit from Thermo Fisher’s access to the biopharma industry through its customer value proposition, as well as its e-commerce capabilities and extensive customer channels. Thermo Fisher will also extend the geographic reach of Affymetrix’s products by leveraging its market presence and infrastructure in Asia-Pacific, particularly China.

Creates Attractive Financial Benefits.

The transaction is expected to be immediately accretive to Thermo Fisher’s adjusted EPS 1 , 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 income 1 benefit from revenue-related synergies.

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