January 8, 2016 / 11:00 PM / 2 years ago

Thermo Fisher to buy Affymetrix for $1.3 billion

(Reuters) - Thermo Fisher Scientific Inc (TMO.N), the world’s largest maker of scientific instruments, said it agreed to buy Affymetrix Inc AFFX.O for $1.3 billion in cash, beefing up its genetic analysis products business.

Thermo Fisher’s offer of $14 per share represents a rich 52 percent premium to Affymetrix’s Friday close of $9.21.

Affymetrix shares were trading at $13.70 after market, while Thermo Fisher was unchanged.

Santa Clara, California-based Affymetrix, which had revenue of about $350 million in 2014, makes tools for genomic analysis and genetic testing.

Following the acquisition, expected to close by the end of the second quarter, Affymetrix will be integrated into Thermo Fisher’s Life Sciences Solutions Segment.

The deal is expected to immediately add to adjusted earnings per share, the company said.

Thermo Fisher said it intends to fund the deal using cash on hand and short-term debt.

JPMorgan is Thermo Fisher’s financial adviser, while Wachtell, Lipton, Rosen & Katz is providing legal counsel.

Affymetrix’s financial adviser is Morgan Stanley and Davis, Polk & Wardwell LLP the legal counsel.

Shares of Thermo Fisher, which has a market value of about $53 billion, closed at $134.16 on Friday.

Reporting by Sneha Banerjee and Sudarshan Varadhan in Bengaluru; Editing by Sriraj Kalluvila

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