Thermo Fisher Scientific and Life Technologies Corporation signed an agreement under which Thermo Fisher will acquire Life Technologies for $76 in cash per share, or approximately $13.6 billion, plus the assumption of net debt at close, which was $2.2 billion as of year-end 2012, the companies announced in a press release. The deal is expected to close in early 2014, pending Life Technologies shareholder approval and regulatory approvals. The combination will increase the company’s depth of capabilities in research, specialty diagnostics, and applied markets. Life Technologies’ complementary products strengthen Thermo’s leading role in analytical technologies and specialty diagnostics, and will bring leadership in proteomics, genomics, and cell biology.
California-based Life Technologies focuses on research consumables, genetic analysis, and applied sciences. In 2012, Life Technologies had $3.8 billion in revenue, of which 85% was in research consumables and services and 15% in instruments. An important new technology is Life Technologies’ next-generation sequencing.
“The acquisition of Life Technologies enhances all three elements of our growth strategy: technological innovation, a unique customer value proposition, and expansion in emerging markets,” said Marc N. Casper, president and CEO of Thermo Fisher Scientific. Life Technologies transacts more than half of its orders online. This e-commerce platform, combined with Thermo’s research and healthcare customer channels, creates a world-class commercial infrastructure, says the company. The combined company will build on its strong foothold in Asia-Pacific, particularly in China, to meet increasing customer demand in the life sciences and healthcare industries.
Life Technologies has 10,000 employees globally. It is expected that Life Technologies’ president and COO, Mark P. Stevenson, will have a significant leadership role in the combined company.
The acquisition will generate an estimated $85 million in adjusted operating income synergies in its first full year and a total of $275 million by the third full year, Thermo reported in a webcast discussing the transaction.