Scarcely any organization outside of Star Trek's Borg have taken the route of growth-by-acquisition quite like Danaher (NYSE:DHR). Fortunately, Danaher is quite a bit friendlier in its approach and typically makes very fair offers to the shareholders of the targeted company. They are at it once again, though, announcing on Wednesday that they would acquire electronic test equipment specialist Keithley Instruments (NYSE:KEI) for $21.60 in cash.
What Danaher Is Getting?
In paying a net value of about $300 million, Danaher is acquiring a leading niche electronics company with trailing revenue of over $100 million. That is a pretty good premium for Keithley shareholders, at least relative to the current valuation of others in the "scientific equipment" space like Agilent (NYSE:A). Although some shareholders may lament that the company sold itself just as business seemed to be recovering, Danaher is giving them an exit price that has not been seen since 2004. It is entirely possible that Keithley might have had another run in it, but Danaher is offering a risk-free price that should satisfy almost any shareholder.
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