Color-measurement technology company X-Rite Inc. (XRIT) agreed to be acquired by diversified manufacturer Danaher Corp. (>> Danaher Corporation) in a deal valued at $478 million.
The $5.55-a-share offer represents a 39% premium to Monday's closing price. X-Rite shares closed Monday at $4 each and were halted in recent premarket trading. The stock is down 14% this year.
X-Rite Chief Executive Thomas J. Vacchiano Jr. said that joining Danaher will give the company--known for Pantone color matching system--resources to achieve its growth goals, expanded access to new market and complementary technologies.
After the deal closes, anticipated in the current quarter, X-Rite will operate as a standalone unit in Danaher's product identification group and existing management will remain in senior leadership positions.
Danaher expects the acquisition will complement its Esko digital packaging design capabilities and further its leading position in the product identification industry. The diversified toolmaker has been relying on acquisitions to bolster a slow-growing revenue base.
Including debt assumption and net of cash, the deal is valued at a total of $625 million.
Danaher shares closed Monday at $54.59 and were inactive in recent premarket trading.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; [email protected]