Affymetrix (NASDAQ: AFFX) share soars 49% to $13.73 on Monday after Thermo Fisher Scientific Inc. (NYSE: TMO) agreed to acquire Affymetrix Inc for $1.3 billion.
Thermo Fisher Scientific announced the acquisition on Friday after the close of financial markets. The company will pay $14 a share in cash for the acquisition. The offer price represents a 52 percent premium of Affymetrix’s closing price on Friday.
The deal is still waiting for Affymetrix shareholders’ approval. Thermo Fisher expects that the transaction will close by the end of the second quarter and will add 10 cents a share to earning in the first full year.
Affymetrix is a California based company that manufactures DNA microarrays. The company provides innovative technologies that further multiplex and simultaneous analysis of biological systems at the cell, protein, and gene level. According to Bloomberg, the acquisition will help Thermo Fisher to expand its array of laboratory equipment, which includes diagnostic tools for hospitals and mass spectrometers for chemists.
Thermo Fisher also expects that the acquisition will bring total synergies of $70 million by the third year after the transaction closes. The total synergies include $55 million of cost synergies and $15 million revenue-related synergies.
“Affymetrix’s technologies are highly complementary and present new opportunities for us in targeted clinical and applied markets,” Thermo Fisher president and CEO Marc N. Casper said in a statement.