Applied Biosystems, Invitrogen deal
Research tool provider Invitrogen will acquire instrument company Applied Biosystems for $38 per share, or about $6.7 billion. The price is a 17% premium to Applied Biosystems’ close of $32.44 on June 11, the day before the deal was announced. Payment is expected to be 45% cash and 55% stock. Invitrogen will own the majority of the combined company, which will be named Applied Biosystems Inc. and headquartered in Carlsbad, Calif. For FY07, the combined entity would have reported $3.4 billion in revenue.
The companies expect 70% of combined revenue to be generated by consumables. The companies also said the merger will provide access to an extensive commercial organization for both parties, and is expected to generate a significant cost savings of $125 million by the third year due to operational efficiencies. ...