Thermo: FEI deal will complement mass spec portfolio
FEI designs and manufactures high-performance electron microscopy systems that provide images and information at micro-, nano- and picometer scales.
It has more than 3,000 employees and R&D, sales and manufacturing operations in Europe and the US.
The business, which had 2015 revenues of $930m, will become part of Thermo Fisher’s Analytical Instruments segment.
Marc Casper, president and CEO of Thermo Fisher Scientific, said there is growing adoption of electron microscopy to study the structure of proteins in the life science field.
“The technologies we gain with FEI will complement our mass spectrometry leadership, putting Thermo Fisher in the best position to capitalize on this important trend,” he said.
“As the unrivaled leader in life sciences, we will also be able to leverage our global scale and commercial reach to extend the use of FEI’s products within our large biopharma customer base.
“FEI’s commitment to R&D, strong IP foundation, and excellent services and software offerings are a great fit with our Analytical Instruments business and will create exciting new opportunities to drive growth.”
Thermo Fisher said FEI’s high-end electron microscopes (EM) are complementary to its mass spectrometry systems used for protein identification and characterization.
FEI’s imaging technologies also expands Thermo Fisher’s capabilities in materials science.
Its 3D nano-characterization and nano-prototyping technologies support the growing trend toward development of devices that are smaller and more complex to manufacture.
Thermo Fisher will benefit from FEI’s presence in the semiconductor market, creating a new growth opportunity within this area.
Market expansion opportunity
Don Kania, president and CEO of FEI, said the agreement would offer benefits to FEI shareholders, customers and employees.
“Our shareholders will see substantial and immediate value through the terms of this transaction,” he said.
“Our customers will benefit from the shared commitment Thermo Fisher and FEI have to innovation and customer service. And our employees will see new opportunities as our development and market expansion plans accelerate by being part of Thermo Fisher, a large and growing company.
“Fundamentally, this transaction bolsters our already strong position in the marketplace and allows us to play an increasing role in enabling our customers to accelerate breakthrough discoveries, increase productivity and provide solutions to global challenges.”
Thermo Fisher said it expects total synergies of $80m by year three following the close, consisting of $55m of cost synergies and $25m of adjusted operating income benefit from revenue-related ones.
The transaction is expected to be completed by early 2017 subject to approval of FEI shareholders and regulatory approvals.
It follows Thermo Fisher Scientific’s acquisition of Affymetrix for $1.3bn in March.