Thermo Fisher to acquire genetic-test firm Life Technologies in $13.6 billion deal

Thermo Fisher Scientific, a Waltham, Mass.-based life-sciences firm and manufacturer of scientific equipment, said it will acquire Life Technologies in a $13.6 billion deal .

Life Technologies, based in Carlsbad, Calif., develops and markets genetic tests, as well as testing used by the forensics and food-safety sectors.

The company also is known for developing its next-generation genetic-sequencing systems, a technology that Thermo Fisher is “extremely excited about,” according to remarks made by Thermo Fisher President and CEO Marc Casper during a conference call.

“The acquisition of Life Technologies enhances all three elements of our growth strategy: technological innovation, a unique customer value proposition and expansion in emerging markets,” Casper said in a news release.

Both Thermo Fisher and Life Technologies have made a number of acquisitions in recent years. Thermo Fisher acquired One Lambda, which develops transplant diagnostics, for $925 million in cash in September of last year. Just last week, Life Technologies said it planned to buy KDR Biotech Co., a Seoul-based reagents distributor.

The deal to acquire Life Technologies is expected to close in early 2014.

Moody's Investors Service said it placed Thermo Fisher's ratings under review for a possible downgrade, citing the deal's impact on the company's debt.

“That said, the combined company will have considerable scale, diversity and cash generation capabilities that are supportive of an investment grade rating,” said Jessica Gladstone, a senior analyst at Moody's, in a statement.

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