Original from: Investopedia

Medical tool supplier Danaher (DHR) is expanding its product offerings by purchasing British biotech firm Abcam Plc (ABCM) for $5.7 billion, including debt.

Danaher said it would pay $24 per share for Abcam, a 2.7% premium to Abcam’s closing price on Friday. The company indicated it plans to finance the deal through cash on hand and proceeds from the issuance of commercial paper.

Abcam’s life sciences tools help advance drug discoveries, and its technologies are used by about 750,000 researchers, with Danaher CEO Rainer Blair noting Abcam’s record of innovation, product quality, and “breadth of antibody portfolio positions” made it an attractive acquisition target.

Danaher explained that Abcam is expected to operate as a standalone firm within its Life Sciences division. 

Abcam has been under pressure from activist investors to explore strategic alternatives, and indicated it had 20 potential buyers before deciding on Danaher. The transaction is expected to close in the middle of next year.

Shares of Danaher advanced 2.3% on Monday following the news, while American Depositary Receipts (ADRs) of Abcam Plc fell 4.3%.

Source: Danaher Buys Abcam for $5.7 Billion to Expand Its Product Offerings