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Thermo Fisher Scientific acquires FEI Company for $4.2 billion
June 19, 2016
Source: ASM International
Thermo Fisher Scientific Inc., Waltham, Mass., announces that it is to acquire FEI Co., Hillsboro, Ore., for approximately $4.2 billion. FEI brings unique imaging technologies that improve quality and productivity, and expand Thermo Fisher's capabilities in materials science. Its 3D nano-characterization and nano-prototyping technologies, for example, are critical tools that support the growing trend toward development of devices that are increasingly smaller and more complex to manufacture. Thermo Fisher will benefit from FEI's strong presence in the semiconductor market, creating a new growth opportunity within this customer set.
FEI brings an industry-leading services business supported by more than 800 employees in over 20 countries, enabling customers to achieve maximum productivity from their instruments. The services business drives high-margin, recurring revenues that represent approximately 25% of total FEI sales, and will contribute to Thermo Fisher's growing services capabilities.
The transaction is expected to be accretive to Thermo Fisher's adjusted EPS by $0.30 in the first full year after close. Thermo Fisher expects to realize total synergies of approximately $80 million by year three following the close, consisting of approximately $55 million of cost synergies and approximately $25 million of adjusted operating income benefit from revenue-related synergies.
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