Invitrogen Acquires Applera’s Applied Biosystems (IVGN, ABI)
Invitrogen Corp. (NASDAQ: IVGN) has announced a $6.7 Billion cash and stock acquisition for Applera’s Applied Biosystems Group (NYSE: ABI). The breakdown is 45% percent in cash and the 55% in stock.
Invitrogen Corp. will pay $38.00 per share between the cash and stock, compared to yesterday’s close of $32.44 and compared to the $37.67 52-week high. After the deal closes, it sees fiscal and calendar year 2009 organic revenue growth to be in the mid-single digits.
The company says that the combined operations will have annual sales of $3.5 Billion and is expected to be neutral to slightly accretive to Invitrogen’s earnings per share the first year after close and significantly accretive in year two.
This $38 transaction is if the 20-day volume weighted average price of Invitrogen common stock is in the range of $43.69 to $46.00 three business days prior to the close of the transaction. The price will differ if Invitrogen’s 20 day volume-weighted average price is above or below that range shortly before the close of the transaction. The consideration represents a premium of 17% to Applied Biosystems’s closing price on June 11, 2008, or 12% to Applied Biosystems’s average closing price in the last 30 trading days.
Invitrogen is trading at $39.00 pre-market, down from the $43.35 close. The 52-week trading range is $35.12 to $49.58.
Jon Ogg
June 12, 2008