GENETIC testing equipment maker Life Technologies yesterday accepted a $13.6bn (£8.9bn) cash buyout proposal from scientific and laboratory instruments company Thermo Fisher Scientific in one of America’s biggest corporate takeovers this year.
The deal values Life Tech at $76 per share and would catapult Thermo Fisher into the hot field of genetic sequencing, where researchers, drugmakers and doctors are uncovering the hereditary factors underpinning diseases to better tailor treatments to patients.
The offer represents a premium of about 12 per cent to Life Tech’s market close on Friday.
Thermo Fisher expects the transaction to close early in 2014 and immediately add to earnings before special items. It still requires US regulatory and shareholder approvals.
Thermo Fisher will also assume Life Tech’s net debt of about $2.2bn.
In the third year following the deal’s closing, the company said it expected to achieve cost savings of $250m by consolidating facilities and support functions.
City A.M. Reporter