AFFX Affymetrix, Inc.

   By Ezequiel Minaya 
 

Affymetrix Inc. said Monday that it rejected an unsolicited buyout bid submitted by a group of the company's former executives and would continue to back a proposed acquisition by Thermo Fisher Scientific Inc.

Affymetrix's board said it determined that the buyout bid by Origin Technologies Corp., a newly formed entity owned by former Affymetrix executives, was not a superior proposal as "defined in Affymetrix's merger agreement with Thermo Fisher Scientific Inc."

Shareholders of Affymetrix are expected to vote on the Thermo Fisher offer on Thursday.

Representatives from Origin were unavailable for immediate comment.

Origin last week increased its all-cash offer to $17 a share, valuing Affymetrix at about $1.58 billion and trumping its previous offer of $16.10 a share. In January, Thermo Fisher agreed to buy Affymetrix for about $14 a share, or roughly $1.3 billion, in a bid to boost its biogenetic-analysis portfolio. The Thermo deal offered a 52% premium to Affymetrix's stock price before the announcement.

Affymetrix said Monday that though Origin had a higher offer, "the board found the risks to initiating and consummating a potential transaction with Origin outweighed the potential benefit," according to the news release announcing Affymetrix's decision.

Among the perceived risks were the ability to secure third-party financing as well as obtain the needed approvals by regulators in China and the U.S.

Thermo Fisher, in a separate statement, said it was pleased with the decision by the Affymetrix board and that it was confident Affymetrix stockholders would vote in favor of the deal.

Shares of Affymetrix fell 5.4% to $14.12 in afternoon trading in New York, while Thermo Fisher dropped 32 cents to $138.69.

Write to Ezequiel Minaya at Ezequiel.Minaya@wsj.com

(END) Dow Jones Newswires

March 28, 2016 16:01 ET (20:01 GMT)

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