Thermo Fisher Scientific to Acquire Affymetrix for $1.3B

January 11, 2016
Thermo Fisher Scientific to Acquire Affymetrix for $1.3B
Thermo Fisher says deal will strengthen its position in bioscience research tools and genetic analysis.

Thermo Fisher Scientific plans to buy Affymetrix for $1.3 billion, in a deal the buyer said will strengthen its position in bioscience research tools and genetic analysis.

The deal, announced Friday after the close of financial markets, expands Thermo Fisher’s offerings with Affymetrix’s technologies, designed to enable parallel and multiplex analysis of biological systems at the cellular, protein, and genetic level. Affymetrix’s customers include users in research and applied markets, including life sciences and translational research, molecular diagnostics, reproductive health and agricultural biotechnology.

“Affymetrix’s technologies are highly complementary and present new opportunities for us in targeted clinical and applied markets,” Thermo Fisher president and CEO Marc N. Casper said in a statement.

Thermo Fisher said its bioscience capabilities will be enhanced by Affymetrix’s eBioscience offering, which includes antibodies, multiplex RNA, and protein and single-cell assays. The technologies serve the flow cytometry market segment as well as new markets with potential for high growth, such as single-cell biology, immunotherapy, and infectious disease research.

Also attractive to Thermo Fisher are Affymetrix’s complementary products in genetic analysis, used in cytogenetics, genotyping, and gene expression. Thermo Fisher said its presence in some clinical and applied markets—such as reproductive health and agricultural biotechnology—will be strengthened by Affymetrix’s microarray platform.

Another deal benefit, according to Thermo Fisher, will be opening its e-commerce capabilities, customer channels, and its market presence and infrastructure in China and the Asia-Pacific region, to Affymetrix.

Thermo Fisher said it expects to reduce overlapping expenses by approximately $70 million by the third year following the close of the acquisition.

Headquartered in Santa Clara, CA, Affymetrix has approximately 1,100 employees worldwide and generates annual revenues of approximately $350 million—compared with $17 billion in revenues and 50,000 employees for Waltham, MA-based Thermo Fisher.

Thermo Fisher said it intends to use cash on hand and short-term debt to finance the Affymetrix acquisition. The deal is expected to add 10 cents per share to Thermo Fisher’s adjusted earnings per share in the first full year after the deal closes.

The transaction is expected to be completed by the end of the second quarter, subject to approval from Affymetrix shareholders and customary closing conditions, including applicable regulatory approvals. Upon closing of the deal, Affymetrix will be integrated into Thermo Fisher’s Life Sciences Solutions Segment.

“We are excited about the opportunity to combine our portfolios and strengthen our position in high-growth markets such as single-cell biology, reproductive health and AgBio,” Affymetrix president and CEO Frank Witney said in a statement.