Group of Former Affymetrix Executives Submits Offer, Complicating Tie-Up

By Austen Hufford 

A group of former Affymetrix Inc. executives submitted a new proposal for the genetic-analysis company, threatening its planned tie-up with Thermo Fisher Scientific Inc.

Origin Technologies Corporation LLC, a newly formed entity owned by former Affymetrix executives, said it wanted to buy Affymetrix for $16.10 per share, in a deal worth about $1.5 billion.

Affymetrix shares jumped 14% to $16.04 on the news.

In January Thermo Fisher Scientific said it would buy Affymetrix for about $14 a share, or roughly $1.3 billion, in a bid to boost its biogenetic-analysis portfolio.

Before the January offer became public, Affymetrix's shares closed at $9.21.

Thermo Fisher and Affymetrix didn't immediately respond to a request for comment.

In Origin's offer letter, it said it would pay the $55 million termination fee potentially owed to Thermo Fisher if the offer was accepted.

Origin is funding its deal with debt financing from a public equity firm. The four people running Origin formerly worked at Affymetrix as vice presidents, including a former general counsel and a head of molecular diagnostics research and development.

Write to Austen Hufford at [e-mail]

(END) Dow Jones Newswires

March 18, 2016 13:37 ET (17:37 GMT)

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