Thermo Fisher To Buy FEI In a $4.2 Billion Cash Deal

Thermo Fisher Scientific Inc. announced Friday a deal to buy FEI Co. in a cash deal valued at $4.2 billion. As part of the deal, Thermo Fisher will pay $107.50 for each FEI share outstanding, which represents a 14% premium to Thursday's closing price of $94.58, and 0.9% above the previous record close of $106.50 on March 5, 2014. The buyout of FEI, which makes electron microscopy products, is expected to be completed in early 2017. Thermo Fisher anticipates the deal will add 30 cents a share to its earnings in the first full year after the close, with synergies totaling $80 million by year three. FEI's stock, which is currently halted, had run up 11% in the last week through Thursday, and has run up 19% year to date. Thermo Fisher shares were still untraded in the premarket, and have climbed 6.6% this year while the S&P 500 has gained 2.3%.