We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies. Cookie Policy.

Features Partner Sites Information LinkXpress hp
Sign In
Advertise with Us
INTEGRA BIOSCIENCES AG

Download Mobile App




Invitrogen and Applied Biosystems to Merge in $6.7 Billion Deal

By Labmedica staff writers
Posted on 17 Jun 2008
Print article
Invitrogen and Applera, the parent company of Applied Biosystems, announced a merger agreement in which Invitrogen will acquire all outstanding shares of Applera's Applied Biosystems group for US$6.7 billion.

The strategic combination will create a global leader in biotechnology reagents and systems generating approximately $3.5 billion in combined sales, with significant commercial, operational, and technical scale, well positioned to accelerate and guide discoveries and applications. The combined company will generate over 70% of its revenue from consumables and services. In addition, cost savings, operational and other efficiencies are expected to add to the bottom line.

Gregory T. Lucier, chairman and chief executive officer of Invitrogen, said, "With this acquisition, we are nearly doubling our consumables business as almost half of Applied Biosystems's revenues are consumable in nature. It also provides significant value creating opportunities for customers, shareholders and employees alike.”

Industry insiders commented that the transaction makes sense given the overlapping expertise, sales force, and product lines of both companies. Insiders also thought the price paid for Applied Biosystems to be somewhat of a bargain.

The new company will have considerable presence in key growth markets and advanced technical capabilities in the areas of genetics, proteomics, and cellular biology. Invitrogen and Applied Biosystems have highly recognizable brands in core structural and functional genomic product areas, cell biology, proteomics, as well as essential tools such as transfection reagents, antibodies, fluorescent technologies, and cell culture reagents.

Mark P. Stevenson, president and chief operating officer of Applied Biosystems, said, "Combining Applied Biosystems's and Invitrogen's capabilities will realize growth opportunities greater and faster than either company could achieve independently.”

Following the close of the transaction, the combined organization will be named Applied Biosystems, Inc. and will have its corporate headquarters in Carlsbad, CA, USA. The board of directors of the new company will be composed of the nine current Invitrogen board members and three additional members from the current Applera board. Gregory T. Lucier will be chairman and chief executive officer of the combined company, and Mark P. Stevenson will become president and chief operating officer.

The cash and stock transaction is expected to be split 45 and 55% respectively. Applera-Applied Biosystems shareholders will receive $38 dollars per share of common stock, an amount representing a 17% premium over market value. However, under the terms of the agreement the split and the total value per share may differ depending on certain market conditions.

The transaction is subject to approval by Invitrogen and Applera-Applied Biosystems shareholders, customary closing conditions and regulatory approvals. The transaction is expected to close sometime in the fall of 2008.

Invitrogen Corporation (Carlsbad, CA, USA) provides products and services that support academic, government research institutions, pharmaceutical, and biotech companies worldwide. The company employs about 4,700 scientists and other professionals and had revenues of approximately $1.3 billion in 2007.

Applera-Applied Biosystems (Foster City, CA, USA) serves the life science industry and research community by developing and marketing instrument-based systems, consumables, software, and services. Applied Biosystems employs about 5,000 worldwide and reported sales of approximately $2.1 billion during fiscal 2007.


Related Links:
Invitrogen Corporation
Applied Biosystems
Gold Member
Antipsychotic TDM Assays
Saladax Antipsychotic Assays
Verification Panels for Assay Development & QC
Seroconversion Panels
New
Unstirred Waterbath
HumAqua 5
New
Pipet Controller
Stripettor Pro

Print article

Channels

Clinical Chemistry

view channel
Image: QIP-MS could predict and detect myeloma relapse earlier compared to currently used techniques (Photo courtesy of Adobe Stock)

Mass Spectrometry-Based Monitoring Technique to Predict and Identify Early Myeloma Relapse

Myeloma, a type of cancer that affects the bone marrow, is currently incurable, though many patients can live for over 10 years after diagnosis. However, around 1 in 5 individuals with myeloma have a high-risk... Read more

Immunology

view channel
Image: The cancer stem cell test can accurately choose more effective treatments (Photo courtesy of University of Cincinnati)

Stem Cell Test Predicts Treatment Outcome for Patients with Platinum-Resistant Ovarian Cancer

Epithelial ovarian cancer frequently responds to chemotherapy initially, but eventually, the tumor develops resistance to the therapy, leading to regrowth. This resistance is partially due to the activation... Read more

Technology

view channel
Image: Ziyang Wang and Shengxi Huang have developed a tool that enables precise insights into viral proteins and brain disease markers (Photo courtesy of Jeff Fitlow/Rice University)

Light Signature Algorithm to Enable Faster and More Precise Medical Diagnoses

Every material or molecule interacts with light in a unique way, creating a distinct pattern, much like a fingerprint. Optical spectroscopy, which involves shining a laser on a material and observing how... Read more
Copyright © 2000-2025 Globetech Media. All rights reserved.