By Saabira Chaudhuri
Thermo Fisher Scientific Inc. (TMO) agreed to buy transplant diagnostics test provider One Lambda for $925 million in cash to boost its existing immunosuppressant monitoring assays business.
Thermo Fisher, a supplier of analytical technologies and laboratory products, said the purchase price includes the cost of a three-year retention program established for key One Lambda employees, payments payable to certain shareholders for noncompetition agreements and a one-year earn-out provision based on the achievement of certain financial targets.
The company said One Lambda generated 2011 revenue of $182 million and will become part of Thermo Fisher's specialty diagnostics segment.
"The One Lambda team has pioneered market-leading tests that are widely used across the transplant-testing workflow to improve patient outcomes," Chief Executive Marc N. Casper said. "With its strong technology platform, high margin profile and good growth prospects, the business is perfectly aligned with our specialty in vitro diagnostics strategy."
The company expects to close the deal in the fourth quarter and expects it to add nine cents to 11 cents to Thermo Fisher's 2013 adjusted earnings per share.
The company also said it expects the deal to generate revenue and cost synergies for a total adjusted operating income benefit of about $15 million in 2015.
Thermo Fisher, which in April reported its first-quarter earnings rose 10% on a revenue rise from all segments, has seen strong sales growth over recent quarters, aided by acquisitions and its expansion into Asia-Pacific markets.
Last year, the company agreed to buy closely held allergy-testing company Phadia AB for $3.5 billion, and in May it agreed to buy Doe & Ingalls Management LLC for $175 million in cash. Doe & Ingalls provides specialty-production chemicals and related services to the biopharmaceutical and microelectronics industry.
Shares closed Friday at $52.04 and were inactive premarket. The stock is down 18% in the last 12 months.
Write to Saabira Chaudhuri at firstname.lastname@example.org