2023-08-28 09:45:34 ET
Danaher Corporation (NYSE: DHR) is in focus this morning after it revealed plans of buying Abcam PLC (NASDAQ: ABCM) for $5.70 billion in cash.
Abcam shareholders are not happy
The definitive agreement announced today values each share of the biotech firm at $24 – up only slightly from their previous close. Still, Alan Hirzel – the Chief Executive of Abcam PLC said in a press release on Monday:
Their operating company model allows us to continue to pursue our strategy, while harnessing the power of Danaher System to ensure we remain the partner of choice for our customers.
But shareholders are seemingly not pleased with the proposal considering “ABCM” is down 3.0% at writing. The British firm saw its revenue grow 15% last year on continued demand for its in-house products.
Wall Street currently rates the biotech stock at “overweight”.
Abcam will remain a standalone company
Danaher expects the transaction to close within the first half of 2024. Abcam will continue to operate as a standalone company within its life sciences unit after the deal is complete. According to Rainer M. Blair – the Chief Executive of Danaher Corporation:
Abcam’s long track record of innovation, outstanding product quality and breadth of antibody portfolio positions them as a key partner for the scientific community.
Note that boards of both companies have unanimously approved and recommended this acquisition already. Danaher will fund the agreement partly via cash on hand, as per the press release .
Its shares are in the green this morning but down 12% versus their year-to-date high.
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