NEW YORK (TheStreet) -- FEI (FEIC) shares are surging 14.23% to $108.04 Friday afternoon, following the announcement that lab equipment company Thermo Fisher Scientific (TMO) agreed to buy the microscope technology maker for about $4.2 billion in cash.
Thermo Fisher is offering $107.50 a share for FEI.
TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio commented on the acquisition saying, "I love it." He also recommended, "Stay long TMO, sell FEI."
"We are pleased to reach this agreement with Thermo Fisher, which offers a number of important benefits to FEI shareholders, customers and employees," FEI CEO Don Kania stated. "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."
The deal comes after Thermo Fisher acquired gene-sequencing products maker Affymetrix (AFFX) two months ago.
Based in Hillsboro, OR, FEI designs, makes and supports high-performance electron microscopes that provide images and information at micro, nano and picometer scales which are used by life sciences companies to make discoveries.
Separately, TheStreet Ratings currently has a "Buy" rating on the stock with a letter grade of B.
The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value
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 article's author.
You can view the full analysis from the report here: FEIC