Posted April 16, 2013 by David H in Health

Thermo Fisher Scientific Inc (NYSE:TMO) closes $13.6 billion buy-out deal for Life- BX, LIFE


By market value, Thermo Fisher Scientific Inc (NYSE:TMO) (Closed: $78.58, Down by 1.27%) is the second-largest maker of life-sciences equipment. In an all-cash deal it has agreed to buy Life Technologies Corp (NASDAQ:LIFE) (Closed: $73.11, Up by 7.51%) for close to $13.6 billion. In a statement, the Waltham, Massachusetts-based Thermo Fisher said that this offer of $76 per share is inclusive a $2.2 billion debt assumption. This offer is close to 12 percent more than the $68 closing price that existed for Life Technologies on April 12. Last year, the company had brought in revenue of $3.8 billion.

Long-drawn affair
The Carlsbad, California-based company, whose market value is in excess of $11 billion, manufactures laboratory equipment that helps in DNA-sequencing. This information may eventually be used in identification of certain health-condition risks and will help in disease diagnosis. In addition to this, the technology will help in targeting medicines in a better manner. Life had been reviewing its options for almost the past three months. Its advisers in the deal were Deutsche Bank AG and Moelis & Co. The company had also received a buy-out offer from The Blackstone Group L.P (NYSE:BX) (Closed: $20.49, Down by 3.44%) led private equity consortium.

They were not willing to pay any thing close to $70 per share and had put forth an initial bid of $65 per share and had not increased their offer as they wanted to see how the other bidders fare. Thermo Fisher operates in the science service industry. Analytical Technologies, Laboratory Products and Services and Specialty Diagnostics.

David H

David H. Steinberg grew up in West Hartford, Connecticut, entered Yale at age 16, and earned his law degree from Duke University, where he served as editor-in-chief of the law review. After four years of entertainment law in Atlanta and New York, he abandoned his legal career to attend U.S.C.’s Peter Stark Producing Program. Steinberg broke out as a writer in 1999 with his teen comedy SLACKERS that ignited a bidding war for the script. The movie starred Devon Sawa, Jason Schwartzman, and model Jaime King and became an instant cult classic.