Danaher to acquire Keithley Instruments for $341 million; Keithley stock soarsBy AP
Wednesday, September 29, 2010
Danaher to acquire Keithley Instruments for $341M
WASHINGTON, D.C. — Danaher Corp. will buy electrical instrument maker Keithley Instruments Inc. for about $340.8 million, the companies said Wednesday, sending Keithley shares up 30 percent.
Danaher will pay $21.60 per share for Keithley, a premium of about 74 percent over the stock’s closing price on Monday. Keithley has about 15.8 million shares outstanding. Minus cash, the companies valued the deal at about $300 million.
Danaher said the acquisition will boost its position in the electronics test and measurement industry. Danaher said Keithley, headquartered in Solon, Ohio, will be a part of its Tektronix business once the deal closes, which is expected during the fourth quarter.
KeyBanc Capital Markets analyst Matt Summerville reiterated his “Buy” rating on Danaher following the announcement. He said the acquisition appears to be a good fit for Danaher.
“Its products, which are used to source, measure and control direct and alternating current signals, appear to be a good strategic fit within Tektronix’s test, measurement and monitoring product family,” Summerville said in a research report.
He has a 12-month price target of $48 on the stock.
Shares of Keithley rose $9.03 to $21.42. Danaher stock fell 78 cents to $40.67.
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