WASHINGTON (AP) — Danaher Corp. is buying test and measurement equipment maker Tektronix Inc. for $2.85 billion in a move to expand its electronic testing business.
Under the deal announced Monday, Danaher will launch a cash tender offer of $38 per share for Textronix shares, a 34 percent premium to Tektronix's closing stock price Friday.
Based on Tektronix's nearly 75.1 million outstanding common shares at Sept. 29, the deal is valued at $2.85 billion.
Beaverton, Ore.-based Tektronix said its board unanimously recommends shareholders accept and tender their shares in the offer.
The transaction is expected to close in the fourth quarter of 2007, pending regulatory approval and no material adverse changes to Tektronix's business.
Tektronix will become part of Danaher's electronic test platform, joining Danaher's Fluke and Fluke Networks businesses, and nearly doubling the platform's revenue.
Tektronix reported 2007 profit of $90.4 million on sales of $1.11 billion. The company's management team will join Danaher.
Danaher makes environmental and electronic testing technology, such as bar code readers, as well as dental products and medical instruments.
Danaher's tools and components segment includes hand tools, automotive specialty tools and accessories sold under such brand names as Sears' Craftsman.
It earned $1.12 billion on sales of $9.6 billion in 2006.