Danaher Acquires Abcam In $5.7B Deal; ABCM Is Sliding Below Deal Price - Here's Why

Danaher Corporation DHR has agreed to acquire Abcam plc ABCM for $24.00 per share in cash, or a total enterprise value of ~$5.7 billion, including assumed indebtedness and net of acquired cash.

Cambridge, U.K.-based Abcam will operate as a standalone operating company and brand within Danaher's Life Sciences segment.

This transaction completes the strategic alternatives review that the Abcam Board of Directors began in June 2023 due to strategic inquiries from various parties.

Also Read: Abcam Provides FY24 Guidance & Confirms FY23 Outlook

The transaction is anticipated to close in mid-2024 and will be funded using cash on hand and proceeds from the issuance of commercial paper.

Danaher expects to fund the acquisition using cash on hand and proceeds from the issuance of commercial paper. It held cash and equivalents of $8.57 billion as of June 30, 2023.

Also Read: Danaher Stock Falls After Q2 Earnings - Here's Why

Rainer M. Blair, President and Chief Executive Officer, Danaher, said: "We couldn't be more excited to have Abcam join Danaher. Abcam's long track record of innovation, outstanding product quality, and breadth of antibody portfolio positions it as a key partner for the scientific community."

Also Read: Abcam Downgrade: Analyst Trims Expectations Amid Activist Investor Engagement and Potential Bid Anticipation

Price Action: ABCM shares are trading lower by 4.37% at $22.34 premarket on Monday.