Thermo Fisher Scientific Inc., will expand its range of laboratory equipment used by scientists and biologists as it buys Affymetrix Inc.
The Waltham, Massachusetts based company agreed to buy Affymetrix Inc. in a deal that's valued at approximately $1.3 billion.
According to the terms of the deal, Thermo Fisher will pay $14 per share in cash. The amount represents a premium of fifty two percent to Friday's closing price for Affymetrix. It is expected that the transaction will be completed sometime close to the end June. The company said that it will add ten cents per share to its earnings in the first full year. The merger will also help Thermo Fisher to trim overlapping costs annually by almost $70 million by the third year from the completion of the transaction.
Shares of Thermo Fisher scaled three percent in last one year till Friday's close. In the other hand, Affymetrix's shared have dipped twelve percent. Just before the announcement, trading of Affymetrix shares was put on halt late Friday.
Themro Fisher for some time is gearing up to make its range of diagnostic equipments larger. The company paid$15.4 billion for Life Technologies Corp., in February 2014. That was the biggest ever deal for the company.
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