Danaher Corp. said it will acquire Abcam Plc in a deal worth $5.7 billion, beating out rivals in a race to acquire the UK-based maker of supplies for the life-sciences industry whose technologies are used by thousands of researchers.
(Bloomberg) — Danaher Corp. said it will acquire Abcam Plc in a deal worth $5.7 billion, beating out rivals in a race to acquire the UK-based maker of supplies for the life-sciences industry whose technologies are used by thousands of researchers.
Danaher will pay $24 a share for Cambridge, England based Abcam, according to a statement Monday. The transaction, which includes debt and acquired cash, is seen closing in mid-2024, and Danaher expects to fund it using cash and proceeds from issuing commercial paper.
Sometimes called the “Amazon of antibodies,” Abcam provides scientists with a variety of laboratory products including the immune proteins used in drug discovery and diagnostics. The acquisition will help Danaher, a maker of laboratory equipment and other supplies, in its efforts to provide full services for customers.
Some analysts suggested that the deal and its price look good for Danaher. However, market conditions for the types of tools Abcam makes are expected to keep the share price reaction modest, Bank of America analysts wrote in a note. Meanwhile, in light of the tight competition for the purchase, Abcam investors may have expected a higher purchase price, said Bloomberg Intelligence analyst Jonathan Palmer.
US-traded shares of Abcam fell 3.2% at 11:36 a.m. in New York. Danaher shares gained as much as 1.7%.
The acquisition’s price per share is 40% higher than Abcam’s on May 16, the companies said. That was the day before company founder Jonathan Milner indicated he would take steps to call an extraordinary general meeting to appoint himself as executive chairman of the board.
Bloomberg reported Friday that Danaher was leading other bidders including Agilent Technologies Inc. for the purchase. Abcam engaged with more than 20 potential acquirers before entering the agreement with Danaher, the companies said. Abcam is expected to operate as a standalone company within Danaher.
(Updates with analyst comment in fourth paragraph)
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