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Danaher Corp. to aquire Iris International for $338 mln

Published: 01:22 18 Sep 2012 AEST

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U.S. diagnostics company Iris (NASDAQ:IRIS) said Monday that it will be acquired by diversified manufacturing giant Danaher Corp. (NYSE:DHR) in a deal worth about $338 million.

Shares of Iris popped on the news, up 45.08 per cent as at about 11:19 a.m., trading at $19.47. Shares of Danaher rose 0.40 per cent, trading at $54.98 apiece.

The merger agreement, for $19.50 per share in cash, represents a 45-per-cent premium over the closing price of Iris's stock on September 14.

The companies said the transaction is structured as a tender offer followed by a merger and is expected to be completed in the fourth quarter of 2012. Upon closing, Iris will become part of Danaher's Beckman Coulter Diagnostics business. 

“The board of directors voted unanimously to accept Danaher's proposal as it provides for an immediate compelling cash premium realization for our shareholders,” said Iris president and CEO César M. García.

“Further, Iris will benefit from being a part of a larger organization with significant resources to enable the acceleration of its diversified product pipeline strategy.”

An affiliate of Danaher is expected to commence a tender offer for all of Iris's outstanding common stock within the next week.

Danaher designs, manufactures, and markets innovative products and services to professional, medical, industrial, and commercial customers. 

The company said its brands are among the most highly recognized in each of the markets it serves. The Danaher Business System provides a foundation to 59,000 associates around the world, serving customers in more than 125 countries. In 2011, the company generated $16.1 billion of revenue.

Iris International Inc. is a global in vitro diagnostics company focused on products that analyze particles and living cell forms and structures, or morphology of a variety of body fluids. 

The initial applications for its technology have been in the urinalysis market and the Iris said it is the leading worldwide provider of automated urine microscopy and chemistry systems, with over 3,800 automated urine microscopy systems shipped to more than 50 countries. 

The company said it is expanding its core imaging and morphology expertise into related markets, including applications in hematology and body fluids. 

In addition, Iris's personalized medicine group develops and commercializes the company's NADiA ultra-sensitive nucleic acid detection immunoassay platform, with applications in oncology and infectious disease.

In July, the company released its second quarter fiscal results, noting that its achieved “record revenue” of $30.9 million, up two per cent from the year earlier quarter.

Iris also reaffirmed 2012 guidance of revenues in a range from $127 million to $131 million and earnings per share of 30 to 35 cents.

 

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