Thursday, June 12, 2008

Invitrogen Merges With Applied Biosystems In $6.7B Deal

Carlsbad-based Invitrogen Corporation and Foster City-based Applera Corporation announced this morning that the Invitrogen will merge with Applera's Applied Biosystems Group in a $6.7 billion cash and stock transaction. According to the companies, Invitrogen will acquire all of the outstanding shares of Applera's Applied Biosystems Group, for $38.00 per share split between cash and stock. According to the companies, the merger will result in a company with $3.5B in combined sales. The merged company will be named Applied Biosystems, Inc. and will have its corporate headquarters in Carlsbad. The firms cited their complementary product offerings, organization, ability to expand into new, high growth markets, and cost savings among the reasons for the move. The firm also said it expects to save approximately $125M in cost savings by the third year of the merger, primarily from sourcing and logistics and other overhead. Invitrogen is being advised by Moelis & Company, UBS Investment Bank, and DLA Piper US LLP in the deal; Applera is being advised by Morgan Stanley and Greenhill & Co., as well as Skadden, Arps, Slate, Meagher & Flom LLP. Both Invitrogen and Applera are suppliers of scientific equipment for the pharmaceuticals and biotech industry.