The transaction, which was approved by both firms’ boards of directors today (Monday), will build on both companies’ technological strengths to accelerate results for life sciences customers working in proteomics, genomics and cell biology.
In a conference call discussing the deal, Marc Casper, Thermo Fisher Scientific, president and CEO, said: "Turning to applied markets, our strong position in food safety and environmental testing and Life Technologies’ extensive offering in forensic analysis complement each other quite nicely."
He added that the firm had been expanding its position in PCR-based testing and the deal gives them significant strength in qPCR.
Rumours of the transaction surfaced earlier this year when Life Technologies retained Deutsche Bank Securities and Moelis & Company to assist in its annual strategic review, although at the time, the board said they had not decided on any specific course of action.
Casper said the deal enhances the three parts of their growth strategy: technological innovation, unique customer value proposition and expansion in emerging markets.
“Our customers in research and applied markets will now be able to achieve even higher levels of innovation and productivity by working with the combined company.
“We’re especially excited about the new opportunities we will have to leverage our complementary offerings, fueled by a shared commitment to continuous innovation.”
The transaction, which is expected to close early in 2014, is subject to a Life shareholder vote and satisfying customary closing conditions, including regulatory approvals.
Thermo Fisher manufactures process instrumentation tools for processing and packaging from ingredient handling to inspection of food products and quality control.
Gregory T. Lucier, chairman and chief executive officer of Life Technologies, said: “This transaction brings together two companies intent on accelerating innovation for our customers and achieving greater success in a highly competitive global industry.
“Further, this combination delivers immediate and significant cash value to our stockholders and represents a successful conclusion to the board’s strategic review to enhance stockholder value and develop an even stronger future for Life Technologies.”
Life Technologies offers PCR assays and reagents to food testing solutions for pathogens on a variety of products.
"Today’s announcement also represents the successful conclusion to our Board’s strategic review to enhance their stockholder value and develop an even stronger future for our Company. We conducted a robust process, resulting in a transaction that delivers immediate and significant cash value to our stockholders," he continued during the conference call.
"We are excited to bring together two companies intent on accelerating innovation for our customers, and better positioning the combined company for success in a highly competitive global industry."