OCTOBER 15, 2007 -- Danaher Corp. (search for Danaher) and Tektronix Inc. (search for Tektronix) today announced they have reached a definitive agreement under which Danaher will make a cash tender offer to acquire all outstanding common shares of Tektronix for $38.00 per share. The aggregate purchase price is approximately $2.8 billion, including debt, transaction costs, and net of cash acquired.
The Board of Directors of Tektronix has unanimously recommended that Tektronix shareholders accept and tender their shares into the offer, which represents a premium of approximately 34% to Tektronix's closing price on October 12, 2007. The offer is subject to customary conditions, including tender of a majority of the outstanding shares into the offer (on a fully diluted basis but excluding any shares issuable pursuant to the Tektronix Notes), regulatory approvals, and the absence of a material adverse change with respect to Tektronix. The transaction is expected to be completed in the fourth quarter of 2007.
With annual revenues of approximately $1.1 billion, Tektronix provides test, measurement, and monitoring products that enable the design, manufacture, and management of next-generation global communications networks, computing and advanced technologies.Â
Tektronix would become part of Danaher's Electronic Test platform, joining Danaher's Fluke and Fluke Networks businesses, and nearly doubling the platform's revenues, say Danaher representatives.
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"With its well recognized brand, significant global reach, and broad-based expertise in providing solutions for end-users in research and product development for high-growth industries, we believe Tektronix provides an excellent complement to our existing Electronic Test business," asserts H. Lawrence Culp, Jr., Danaher's president and CEO. "We have long admired Tektronix's product innovation and excellent reputation. Through the application of the Danaher Business System, we believe we can continue to deliver strong results in our established businesses and look at attractive adjacent markets for future growth opportunities. We are very pleased to welcome Tektronix's management team and associates to Danaher."
"The combination of Danaher and Tektronix enables us to leverage each other's strengths and build on our commitment to long-term growth, innovation, and continuous productivity improvement," adds Richard H. Wills, chairman of the board, president, and CEO of Tektronix. "We believe this is a compelling transaction for Tektronix shareholders and that the combined efforts of Danaher and Tektronix will extend the leadership position we have built in our served markets throughout the world."
The transaction will be a "fundamental change" under the terms of the indenture governing Tektronix's $345 million aggregate principal amount 1.625% Senior Convertible Notes due 2012, which will entitle the noteholders to convert their notes into a cash amount based on the value of a certain number of common shares to be determined by a formula set forth in the indenture.
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