This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Invitrogen, Applied Biosystems Ink Merger

Biotech company Invitrogen (IVGN) has inked a deal to buy Applera Corp.'s scientific-instrument company Applied Biosystems (ABI) in a $6.7 billion cash and stock deal.

Under the deal announced Thursday morning, Applera-Applied Biosystems shareholders will receive $38 for each share in a combination of 55% in Invitrogen common stock and 45% cash. Applera-Applied Biosystems shareholders will have the option to request all cash or all stock.

The $38 per-share value represents a premium of 17% to Applied Biosystems's closing price Wednesday.

The merger of Carlsbad, Calif.-based Invitrogen and Foster City, Calif.-based Applied Biosystems is expected to close in the fall. The combined company will be called Applied Biosystems and will be headquartered in Carlsbad.

Invitrogen chairman and CEO Gregory Lucier will maintain those titles with the combined company, and Applied Biosystems' Mark Stevenson will maintain his titles of president and chief operating officer after the deal closes.

Invitrogen expects the acquisition will be neutral to slightly accretive to its earnings per share the first year after close and "significantly accretive" in the second year.

"Invitrogen and Applied Biosystems will be well positioned to compete in several rapidly growing markets, such as next generation sequencing, cell biology, applied markets and emerging geographies," the companies said in a statement.

Shares of Applied Biosystems were up $2.32, or 7.2%, at $34.76 in early trading Thursday. Shares of Invitrogen, however, were sliding $4.85, or 11.2%, to $38.50.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
ABI $22.98 1.01%
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%
TSLA $185.00 0.00%

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs