Thermo Fisher Scientific to Acquire Affymetrix for $1.3 Billion to Strengthen Leadership in Genomic Analysis and Clinical Diagnostics

Thermo Fisher Scientific Inc., a world-leading biological services provider, announced that, with the approval of its Board of Directors, it will acquire the renownedChipManufacturer — AffymetrixChip(Affymetrix, also translated as Affy Matrix). Based on Affymetrix’s closing price of $9.21 per share on the day, with its 52-week high reaching only $13.11, Thermo Fisher’s offer represents a 52% premium over the company’s current stock price.

Affymetrix's closing price on January 8 (local time)

Why Was Affymetrix Worth Acquiring by Thermo Fisher Scientific at Such a High Valuation?

Affymetrix, headquartered in California, USA, is commonly referred to by industry insiders as "Affy Chips." It is a world-class microarray manufacturer with 1,100 employees globally and business operations across the United States, Europe, and Asia. Its annual revenue is approximately USD 350 million.

As a pioneer in the global gene chip industry, Affymetrix developed the world’s first gene chip as early as 1989. Its proprietary technology for light-controlled in situ synthesis of DNA microarrays represents the highest-density chip fabrication technology currently available. The Affymetrix GeneChip biochip detection system consists of high-density GeneChip arrays and reagents, hybridization,Scannerinstrument, a complete testing platform composed of data processing and analysis tools, is the world's first chip system approved by the European Union and the U.S. FDA for use as an in vitro diagnostic.

As early as May 2015, Affymetrix acquired all assets of Eureka Genomics® in an all-cash transaction valued at $15 million. Headquartered in Hercules, California, Eureka Genomics developed cost-effective, low-to-mid multiplex, high-throughput genotyping assays that leverage universal next-generation sequencing (NGS) platforms for data acquisition. Affymetrix’s acquisition of the company was aimed at providing high-throughput and economical genotyping solutions for crops and animals.

Marc N. Casper, President and Chief Executive Officer of Thermo Fisher Scientific, stated that the acquisition would strengthen its leadership in life sciences and provide new clinical research opportunities and application markets in the field of genetics. Affymetrix’s products will help the company rapidly expand into the flow cytometry market, and, leveraging Thermo Fisher’s global commercial network, these products will reach a broader customer base. The transaction is expected to deliver highly attractive economic returns.

Affymetrix President and CEO Frank Witney stated that joining Thermo Fisher Scientific would create substantial value for its shareholders, employees, and customers. Leveraging Thermo Fisher’s resources, Affymetrix will foster closer collaborations with customers worldwide, particularly in the biopharmaceutical sector, and strengthen its position in high-growth markets such as single-cell research and reproductive health. Additionally, Affymetrix employees will gain significant opportunities for professional growth and development. The company looks forward to working more closely with Thermo Fisher to ensure a smooth transition during the integration period.

A Review: Thermo Fisher Scientific’s Acquisitions and Divestitures Over the Years

Thermo Fisher Scientific, formerly known as Thermo Electron Corporation (founded in 1956), was established under its current name following the merger of Thermo Electron and Fisher Scientific in 2007. The company currently employs approximately 50,000 people across 50 countries. Its four flagship brands—Thermo Scientific, Life Technologies, Fisher Scientific, and Unity™ Lab Services—are all industry leaders, helping customers address a wide range of challenges in analytical chemistry, from routine testing to complex R&D projects. Through years of mergers, divestitures, and asset integration, Thermo Fisher Scientific has achieved a total market capitalization of $53.543 billion, more than twice the $24 billion market cap of Illumina (NASDAQ: ILMN), another international gene sequencing company.

How Did Thermo Fisher Scientific Evolve from a Thermal Electronics Company into One of the Leading Giants in the Instrumentation Industry? The Following Is a Review of Its Acquisitions and Divestitures Over the Years.

On January 8, 2016, Thermo Fisher Scientific announced the acquisition of Affymetrix for $1.3 billion.

On April 15, 2013, Thermo Fisher Scientific acquired Life Technologies for $13.6 billion and assumed Life Technologies’ net debt of $2.2 billion.

On September 13, 2012, One Lambda, a transplantation diagnostics company founded in 1984 by organ transplant research expert Paul Terasaki, was acquired for $925 million. In 2011, the company had a total of 320 employees and annual revenue of $182 million. Following the acquisition, One Lambda was integrated into Thermo Fisher Scientific’s Professional Diagnostics business.

On August 23, 2011, Thermo Fisher Scientific acquired Phadia for €2.47 billion (approximately $3.22 billion). Founded in 1967, Phadia had 1,500 employees worldwide and reported revenues of €367 million ($479 million) in 2010. Following the acquisition, Phadia was integrated into Thermo Fisher Scientific’s Professional Diagnostics business.

On July 18, 2011, Trek Diagnostic Systems was acquired at an undisclosed price. The latter is a global supplier of microbiology solutions, providing services such as blood culture and microbial identification for the pharmaceutical and clinical laboratory markets. It is reported that Trek had 150 employees at the time of acquisition and generated $34 million in revenue in 2010. Following the acquisition, Trek was integrated into Thermo Fisher Scientific’s Analytical Technologies business.

On May 18, 2011, Thermo Fisher Scientific acquired Sterilin, a UK-based manufacturer of disposable plastic products, for an undisclosed amount. Sterilin produces disposable plastic items used for sample collection, preservation, and processing. Headquartered in South Wales, the company had approximately 270 employees and reported revenue of $35 million in 2010. Following the acquisition, Sterilin was integrated into Thermo Fisher’s Laboratory Products and Services segment.

On May 17, 2011, Thermo Fisher Scientific acquired Dionex for $2.1 billion. Founded in 1975, Dionex launched its first ion chromatography system for water analysis shortly after its establishment and continued to grow through innovation and global expansion. Prior to the acquisition, the company had more than 1,600 employees across 21 countries on six continents and held significant influence in the Asia-Pacific region. Following integration, Dionex was incorporated into Thermo Fisher Scientific’s Analytical Technologies segment.

On February 24, 2011, Thermo Fisher Scientific sold its subsidiary Athena Diagnostics to Quest Diagnostics for $740 million and its subsidiary Lancaster Laboratories to Eurofins Scientific for $200 million. In 2010, Athena and Lancaster generated annual revenues of $110 million and $115 million, respectively.

On December 27, 2010, Thermo Fisher Scientific acquired Lomb Scientific, a renowned supplier of laboratory chemicals, consumables, and equipment in Australia and New Zealand. With approximately 100 employees across its offices and warehouses in Australia and New Zealand—particularly in Sydney, Perth, and Auckland—the company reported an annual profit of around AUD 34 million in 2009. Following the acquisition, Lomb Scientific was integrated into Thermo Fisher Scientific’s Analytical Technologies and Laboratory Products & Services business.

On July 16, 2010, Thermo Fisher Scientific acquired Fermentas International for $260 million. Fermentas was a manufacturer and distributor of enzymes, reagents, and research tools for molecular and cell biology, headquartered in Ontario with its primary operations in Lithuania. Fermentas employed approximately 500 people and reported revenues of around $54 million in 2009. Following the acquisition, Fermentas was integrated into Thermo Fisher Scientific’s Analytical Technologies business.

On April 15, 2010, Thermo Fisher Scientific acquired Proxeon, a supplier of innovative egg-shaped proteomics analysis products headquartered in Odense, Denmark. The latter had revenues of approximately $10 million in 2009 and employed nearly 40 people. Following the acquisition, Proxeon became part of Thermo Fisher’s Analytical Technologies business.

On March 5, 2010, Thermo Fisher Scientific acquired Finnzymes at an undisclosed price. The latter was a well-known supplier of molecular biology analytical tools, with products including reagents and instruments,Consumablesand kits. Headquartered in Espoo, Finland, the company had 90 employees and reported sales of $20 million in 2009. Following the acquisition, Finnzymes became part of Thermo Fisher Scientific’s Laboratory Products and Services business.

On February 26, 2010, Thermo Fisher Scientific acquired Ahura Scientific for $145 million in cash plus undisclosed milestone payments. Ahura Scientific was a leading provider of on-site analyzers for human health and public safety, enabling customers to rapidly identify various molecular and elemental substances in the field. Headquartered in Wilmington, Massachusetts, Ahura Scientific had nearly 120 employees at the time of acquisition and reported total annual operating revenue of approximately $45 million in 2009. Following the acquisition, it was integrated into Thermo Fisher’s Analytical Technologies business.

Furthermore, between the 2006 merger of Fisher Scientific and Thermo Electron Corporation to form Thermo Fisher Scientific and 2010, Thermo Fisher acquired NanoDrop, a manufacturer of UV-Vis spectrophotometers, in 2007, and B.R.A.H.M.S., a diagnostic reagent supplier, in 2009.