The transaction is expected to close by the end of Q2 2016 subject to conditions, including regulatory approvals and Thermo Fisher said it intends to use cash on hand and short-term debt to finance the transaction.
Affymetrix has 1,100 employees, annual revenues of $350m and sales and distribution operations primarily in the US, Europe and Asia with manufacturing facilities in Cleveland, San Diego, Vienna and Singapore.
The firm’s technologies enables parallel and multiplex analysis of biological systems at the cellular, protein and genetic level, facilitating the transition of research tools into clinical and applied markets.
Variety of industries served
Products are used by customers in life sciences and translational research, molecular diagnostics, reproductive health and agricultural biotechnology.
Affymetrix launched a multi-genome pathogen microarray to detect and identify pathogenic E. coli in less than 24 hours in 2013.
The microarray was designed by the US Food and Drug Administration's Center for Food Safety and Applied Nutrition (CFSAN) and built by Affymetrix.
Thermo Fisher will significantly extend the geographic reach of Affymetrix’s products by leveraging its market presence and infrastructure in Asia-Pacific, particularly China.
Marc Casper, president and CEO of Thermo Fisher Scientific, said the deal would strengthen its position in biosciences and create new market opportunities in genetic analysis.
“In biosciences, the company’s antibody portfolio will significantly expand our offering in the fast-growing flow cytometry market, and customers will have greater access to these products through our global scale and commercial reach,” he said.
“In genetic analysis, Affymetrix’s technologies are highly complementary and present new opportunities for us in targeted clinical and applied markets.”
Thermo Fisher said it expects to realize total synergies of $70m by year three following the close, consisting of $55m of cost synergies and $15m of adjusted operating income benefit from revenue-related synergies.
Global scale and Asia-Pacific presence
Frank Witney, president and CEO of Affymetrix, said by joining Thermo Fisher it will be able to build on collaboration with customers by using its global scale and presence in Asia-Pacific.
“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," he said.
“Our employees will benefit by being part of an industry-leading company, which brings many opportunities for career growth and development.”