UPDATE 1-Invitrogen raises EPS view, says merger on track

(Updates from brief; adds details, background, BOSTON to dateline)

BOSTON, Oct. 9 (Reuters) - Invitrogen Corp IVGN.O, which has agreed to buy Applied Biosystems Inc ABI.N for $6.7 billion to become a leading provider of research tools for the biotech industry, raised its earnings outlook on Thursday and said it was insulated from the credit turmoil.

Invitrogen, which supplies reagents used by gene sequencing and other research tools made by Applied Biosystems, said greater cost savings, as well as a lower-than-expected share count of 179 million shares, would lead to earnings of at least $2.65 a share in 2009, up from a previous estimate of at least $2.60 a share.

The company also gave preliminary estimates for the third quarter of 2008, saying it expects revenue growth at a mid-teen percentage rate and earnings-per-share growth, excluding one-time items, of more than 20 percent.

Invitrogen said third-quarter earnings rose as a result of increased volume and continued operating margin expansion.

"Invitrogen is in a unique position, largely insulated, although clearly not immune, from economic turbulence and our end markets remain stable," Chief Financial Officer David Hoffmeister said in a statement. "As it relates to the financing of the Applied Biosystems transaction, we are well situated with our syndication complete amongst a strong group of lenders."

Invitrogen said in June it would acquire Applied Biosystems for $38 a share in cash and stock. It said it would use cash on hand and proceeds from a fully underwritten debt financing from Bank of America, UBS Investment Bank and Morgan Stanley. The total debt of the combined company would be $3.5 billion, including $2 billion in new debt, the company said.

Invitrogen said that it had originally expected synergies in year one of the merger to be $60 million. Now it expects that figure to be $80 million.

That will be offset to some extent by recent currency fluctuations and an increase in the expected interest rate on new debt.

Invitrogen shares rose 3.2 percent to $31.66 in morning Nasdaq trading. (Reporting by Toni Clarke)