Danaher to Buy Tektronix for $2.8B -- WSJ

Danaher Corp. is set to announce a deal to buy Tektronix Inc. for $2.8B as early as Monday morning, the Wall Street Journal reported. Danaher, an industrial conglomerate, will pay $38 cash for each share of the electronic test and measurement company -- a 34% premium to its $28.34 closing price on the New York Stock Exchange on Friday. The price, according to the Journal, is about 18x Tektronix's annual cash flow of $152M. People close to the deal told the Journal they expect the purchase to add $0.08-$0.10/share to 2009 earnings, part of which will come from cost savings of some $40M in the first year. The addition of Tektronix would boost to 20% the portion of Danaher revenue attributable to test and measurement businesses, which it already operates through its Fluke and Fluke Networks divisions.

Sources: Wall Street Journal
Commentary: Goldman Prefers Danaher Corp. To GE • Danaher's Solid Growth Continues
Stocks to watch: DHR, TEK. Competitors: EMR, JCI, ROK, A. ETFs: IYJ, XLI, VIS
Earnings call transcript: Danaher Q2 2007

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