Abcam (NASDAQ: ABCM) slid in trading on Monday after the news that the supplier of protein consumables will be acquired by Danaher Corp. (NYSE: DHR) at a price of $24 per share in cash. The deal implies a total enterprise value of around $5.7 billion, including the assumption of debt and net of acquired cash.
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The acquisition is expected to close in the middle of next year. After the deal closes, Abcam is expected to function as a standalone operating company and will be a brand within Danaher’s Life Sciences segment. This acquisition is projected to further “Danaher’s strategy to help map complex diseases and accelerate the drug discovery process.”
Danaher intends to fund the acquisition through cash on hand and proceeds from the issuance of commercial paper.
Meanwhile, following the news of the acquisition, Financial Journalist David Faber told CNBC that Danaher’s $24 per share bid could have left some investors disappointed. Explaining further, Faber stated that it was quite possible that other bidders, including Agilent Technologies (A) or Thermo Fisher (TMO) could have made higher offers but antitrust concerns prompted Abcam to accept Danaher’s bid.
Faber told CNBC, “There was a concern about overlaps from those two. [Danaher] is providing a cleaner deal in terms of any concern around antitrust.”
ABCM stock has surged by more than 40% year-to-date.
