TRENDS & PERSPECTIVES
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The two companies believe that this strategic combination will create a global leader in biotechnology reagents and systems, generating approximately $3.5 billion in combined sales. The newly formed company will have significant commercial, operational and technical scale, and will be positioned to accelerate and drive new discoveries and commercial applications. The combined company will have a major presence in key growth markets and exceptional technical capabilities in the areas of genetic analysis, proteomics, cell biology, and cell systems. Following the close of the transaction, the combined organization will be named Applied Biosystems Inc. and will be headquartered in Carlsbad, CA.
Following the closing of the transaction, the board of directors of the new company will be composed of the nine current Invitrogen board members and three additional members from the current Applera board. Gregory T. Lucier will be chairman and chief executive officer of the combined company, and Mark P. Stevenson will become president and chief operating officer.
“This transaction combines the industry’s premier consumables provider with the industry’s premier systems provider to create a world-class biotechnology tools company,” said Lucier, who is currently chairman and chief executive officer at Invitrogen. “With this acquisition, we are nearly doubling our consumables business as almost half of Applied Biosystems’ revenues are consumable in nature. It also provides significant value creating opportunities for customers, shareholders and employees alike.”
Lucier added that, “We expect to realize the benefits of this transaction quickly and efficiently with an integration roadmap that will focus on creating maximum value for the combined company. We are highly confident in the ability of the talent in the combined organization to deliver on our plans. Until the closing date, employees of each company will operate in a business-as-usual mode to ensure continued execution of both Applied Biosystems’ and Invitrogen’s commitments.”
Tony L. White, chairman and chief executive officer at Applera, said, “The Applera Board, with the assistance of its independent financial advisors, has thoroughly reviewed a range of strategic alternatives. We are pleased this transaction provides attractive immediate value for Applera-Applied Biosystems shareholders as well as the ability to participate in future upside potential. It also enhances our ability to serve the needs of our customers and positions us for long-term success.”
Stevenson, who is currently president and chief operating officer of Applied Biosystems, said, “Combining Applied Biosystems’ and Invitrogen’s capabilities will realize growth opportunities greater and faster than either company could achieve independently. Together, Applied Biosystems and Invitrogen will produce innovative new products that better meet the needs of our customers and expand opportunities for stockholders and employees.”
The combined company will generate more than 70% of its revenue from consumables and services. In addition, Invitrogen and Applied Biosystems have recognizable brands in core structural and functional genomic product areas, cell biology, proteomics, and other mass spectrometry-based applications, as well as foundational tools such as transfection reagents, antibodies, fluorescent technologies, and cell culture reagents.
These products, along with Applied Biosystems’ systems integration capabilities, will serve as the basis for developing new high-performance work-flow solutions for customers. Furthermore, the company will have significant research and development resources and a sizable intellectual property estate of over 3600 patents and licenses.
