NEW YORK (TheStreet) -- Thermo Fisher Scientific (TMO) - Get Report stock closed up by 0.57% to $141.59 on Thursday, after the company completed its $1.3 billion acquisition of Affymetrix (AFFX), which was threatened after OriginTechnologies made a competing takeover bid earlier this year.
The scientific equipment provider's acquisition was completed after Affymetrix shareholders approved the merger agreement at a meeting on Thursday, Thermo Scientific said in a statement. Affymetrix is a provider of life science products and molecular diagnostic products.
Thermo Fisher's management was patient and didn't "take the bait to raise their own bid," TheStreet's Jim Cramer, Portfolio Manager of Action Alerts PLUS,wrote in an article today.
"TMO is very shrewd when making capital allocation decisions," Cramer and Research Director Jack Mohr said. "CEO Marc Casper and his team recognized that while AFFX certainly would be a positive addition to the company, the deal wasn't worth overextending TMO's funds with a higher bid as the money would have been better used in other ways to benefit shareholders."
"While AFFX is not material to the long-term TMO thesis, it should prove to be a nice asset and we are happy to move past the noise," Cramer and Mohr added.
(Thermo Fisher is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trial.)
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate THERMO FISHER SCIENTIFIC INC as a Buy with a ratings score of A+. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, reasonable valuation levels, growth in earnings per share and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
You can view the full analysis from the report here: TMO