Pharma BD Deal Intelligence

Invitrogen Corporation / Applied Biosystems Inc.

2008 · Acquisition/Merger · $6.7B · Complete

WRONG BY 46 POINTS

Merger created a scaled life-sciences leader (Life Technologies) that grew steadily, but its flagship sequencing asset (SOLiD) lost the platform war to Illumina, and the combined company itself was sold off to Thermo Fisher just over five years later.

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The coverage arc

Jun 12, 2008 GenomeWeb Bullish

Robert W. Baird analyst Quintin Lai said the Invitrogen-AB combination occupies the genetics and molecular-biology space 'where Thermo Fisher is least exposed'…

Jan 01, 2010 Stanford Graduate School of Business case Bullish

The Invitrogen-AB merger is taught as a model of complementary-platform M&A in life-science tools — the asset base later attracted Thermo Fisher's $13.6B…

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Invitrogen acquired Applied Biosystems in a cash-and-stock transaction at $38 per share, forming Life Technologies with approximately $3.5 billion in combined revenues, 9,500 employees, and operations in over 100 countries. Analysts noted the deal combined largely non-overlapping genetics and molecular-biology franchises -- Applied Biosystems' instruments (including the SOLiD next-gen sequencing platform) with Invitrogen's reagents -- positioning the combined company against Illumina and Roche/454; Life Technologies was itself acquired by Thermo Fisher for $13.6 billion five years later.

Did it work? Outcome assessment

Merger created a scaled life-sciences leader (Life Technologies) that grew steadily, but its flagship sequencing asset (SOLiD) lost the platform war to Illumina, and the combined company itself was sold off to Thermo Fisher just over five years later.

Strategic verdict
Partially Achieved

Key facts

Related deals — scored

DealYearValueOutcome
Invitrogen Corporation / Applied Biosystems Inc. (this deal)2008$6.7B54
ViroPharma Incorporated / Lev Pharmaceuticals, Inc.2008$443M88
Roche Holding AG / Ventana Medical Systems Inc.2008$3.4B88
Shire plc / Jerini AG2008$521M85
Alkermes plc / Cephalon, Inc. (Vivitrol rights)2008$27M83
Sanofi-Aventis / Symbion Consumer (Primary Health Care)2008$544M71
Takeda Pharmaceutical Company Ltd. / Millennium Pharmaceuticals2008$8.8B68

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