Invitrogen Corp has announced plans to acquire Applied Biosystems Group from Applera Corp for $6.7 billion, a move that will create the world’s largest provider of research tools for the life sciences industry.

Under the terms of the deal, Applera/Applied Biosystems stockholders will receive $38.00 for each share they own in the form of Invitrogen common stock and cash and the expected split between cash and stock is 45% and 55%, respectively. The $38.00 a share value is dependent on the 20-day average price of Invitrogen stock and if it is in the range of $43.69-$46.00 three business days prior to the close of the transaction.

The price being offered represents a premium of 17% to Applied Biosystems' closing price on June 11, 2008, and it was noted that the stockholders will have the option to request all cash or all stock, “subject to possible proration”. Upon completion of the deal, Invitrogen shareholders will own the majority of the company, which will keep the Applied Biosystems name.

The firms said that the deal will create “a global leader in biotechnology reagents and systems”, generating approximately $3.5 billion in sales, “with significant commercial, operational and technical scale”. They added that the new entity will be “uniquely positioned to accelerate and drive new discoveries and commercial applications” and have a major presence in the areas of genetic analysis, proteomics, cell biology and cell systems.

Applied Biosystems is one of two units of Applera and other other is Celera Genomics Group, best known for sequencing the human genome. In February, Applera announced it was looking to spin out Celera as an independent, publicly-traded company.