Science, health care and technology conglomerate Danaher Corp. DHR 0.28 % said Tuesday that it would buy molecular-diagnostics company Cepheid Inc. CPHD -0.20 % for $53.00 a share, in its first major acquisition since spinning off a large chunk of its business.
The deal marks a 54% premium over Cepheid’s closing share price Friday, valuing the company at about $4 billion, including debt.
Cepheid develops and manufactures fully-integrated testing systems that can be used to screen for genetic-based disorders and to manage infectious diseases.
“Cepheid’s extensive installed base, test menu and innovative product offering contribute to its market leadership in molecular diagnostics and we expect it to strengthen our position in this high-growth segment,” Danaher Chief Executive Thomas Joyce said.
Based in Sunnyvale, California, Cepheid will become part of Danaher’s diagnostics unit, joining its Beckman Coulter, Leica Biosystems and Radiometer businesses.
The deal is subject to customary closing conditions, including Cepheid-shareholder and regulatory approval, and is expected to close by the end of the year.
Danaher expects to finance the transaction with cash and new debt.
Danaher estimates the move will add about 5 cents to adjusted earnings per share in the first full year after the deal closes. In 2015, Cepheid posted $538.6 million in revenue.
With more than 20 operating companies, Danaher says it units are held together culturally by its Danaher business system.
Source: Wall Street Journal