Tektronix, Fluke to have same owner

  • Associated Press
  • Monday, October 15, 2007 11:26pm
  • Business

PORTLAND, Ore. — Danaher Corp., which owns Everett-based Fluke Corp., is buying another test and measurement equipment maker in Oregon for $2.85 billion.

Under the deal announced Monday, Danaher will make a cash tender offer of $38 per share for Tektronix Inc. shares, a 34 percent premium to its closing stock price Friday.

Tektronix Inc., based in Beaverton, said its board unanimously recommended shareholders accept the offer.

“We believe this acquisition will be a catalyst to accelerate Tektronix’s transition from a very good company to an even better company,” said Rick Wills, chief executive officer.

Danaher is a Washington, D.C.-based holding company that owns a wide variety of companies, including the maker of Sears’ Craftsman tools.

It earned $1.12 billion on sales of $9.6 billion in 2006.

Tektronix is Oregon’s oldest major high-tech company and an early leader in the state’s high-tech industry. Its primary markets are high-end communications and technology testing products. Tektronix reported a 2007 profit of $90.4 million on sales of $1.11 billion.

Tektronix would become part of Danaher’s electronic test platform, joining with Fluke and its spinoff, Fluke Networks, nearly doubling the platform’s revenue. Fluke employs about 1,000 people in Everett.

Tektronix is expected to operate as a wholly owned subsidiary and maintain its presence in Beaverton.

The companies said the deal will help expand the reach of both companies — with Tektronix benefiting from Danaher’s size and funding. Danaher anticipates gains from Tektronix’s specialty markets and global reach, particularly in Asia.

Wills said the two companies have little overlap and many synergies.

The announcement surprised some analysts. Tektronix had not given any indication it was entertaining bids and has long been an industry leader in its product categories.

The news boosted Tektronix stock by 33.56 percent, or $9.51, to close at $37.85 Monday.

Richard Eastman, senior analyst for Robert W. Baird &Co. in San Francisco, called it an “excellent combination.”

In addition to the scale and product breadth, Eastman said both companies have had strong products and good exposure to emerging markets.

Danaher said on a conference call that the company expects the acquisition to have a positive impact of 8 to 12 cents per share in 2008, and up to 15 to 20 cents per share by 2010.

Danaher shares fell 95 cents, or 1.15 percent, to close at $81.52 Monday.

The transaction is expected to close in the fourth quarter of 2007.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

A closing sign hangs above the entrance of the Big Lots at Evergreen and Madison on Monday, July 22, 2024, in Everett, Washington. (Ryan Berry / The Herald)
Big Lots announces it will shutter Everett and Lynnwood stores

The Marysville store will remain open for now. The retailer reported declining sales in the first quarter of the year.

George Montemor poses for a photo in front of his office in Lynnwood, Washington on Tuesday, July 30, 2024.  (Annie Barker / The Herald)
Despite high mortgage rates, Snohomish County home market still competitive

Snohomish County homes priced from $550K to $850K are pulling in multiple offers and selling quickly.

Henry M. Jackson High School’s robotic team, Jack in the Bot, shake hands at the 2024 Indiana Robotics Invitational.(Henry M. Jackson High School)
Mill Creek robotics team — Jack in the Bot — wins big

Henry M. Jackson High School students took first place at the Indiana Robotic Invitational for the second year in a row.

The computer science and robotics and artificial intelligence department faculty includes (left to right) faculty department head Allison Obourn; Dean Carey Schroyer; Ishaani Priyadarshini; ROBAI department head Sirine Maalej and Charlene Lugli. PHOTO: Arutyun Sargsyan / Edmonds College.
Edmonds College to offer 2 new four-year degree programs

The college is accepting applications for bachelor programs in computer science as well as robotics and artificial intelligence.

FILE — Boeing 737 MAX8 airplanes on the assembly line at the Boeing plant in Renton, Wash., on March 27, 2019. Boeing said on Wednesday, Feb. 21, 2024, that it was shaking up the leadership in its commercial airplanes unit after a harrowing incident last month during which a piece fell off a 737 Max 9 jet in flight. (Ruth Fremson/The New York Times)
Federal judge rejects Boeing’s guilty plea related to 737 Max crashes

The plea agreement included a fine of up to $487 million and three years of probation.

Neetha Hsu practices a command with Marley, left, and Andie Holsten practices with Oshie, right, during a puppy training class at The Everett Zoom Room in Everett, Washington on Wednesday, July 3, 2024. (Annie Barker / The Herald)
Tricks of the trade: New Everett dog training gym is a people-pleaser

Everett Zoom Room offers training for puppies, dogs and their owners: “We don’t train dogs, we train the people who love them.”

Andy Bronson/ The Herald 

Everett mayor Ray Stephenson looks over the city on Tuesday, Jan. 5, 2015 in Everett, Wa. Stephanson sees  Utah’s “housing first” model – dealing with homelessness first before tackling related issues – is one Everett and Snohomish County should adopt.

Local:issuesStephanson

Shot on: 1/5/16
Economic Alliance taps former Everett mayor as CEO

Ray Stephanson will serve as the interim leader of the Snohomish County group.

Molbak's Garden + Home in Woodinville, Washington will close on Jan. 28. (Photo courtesy of Molbak's)
After tumultuous year, Molbak’s is being demolished in Woodinville

The beloved garden store closed in January. And a fundraising initiative to revitalize the space fell short.

Everett Mayor Cassie Franklin, Advanced Manufacturing Skills Center executive director Larry Cluphf, Boeing Director of manufacturing and safety Cameron Myers, Edmonds College President Amit Singh, U.S. Rep. Rick Larsen, and Snohomish County Executive Dave Somers participate in a ribbon-cutting ceremony on Tuesday, July 2 celebrating the opening of a new fuselage training lab at Paine Field. Credit: Arutyun Sargsyan / Edmonds College
‘Magic happens’: Paine Field aerospace center dedicates new hands-on lab

Last month, Edmonds College officials cut the ribbon on a new training lab — a section of a 12-ton Boeing 767 tanker.

Gov. Jay Inslee presents CEO Fredrik Hellstrom with the Swedish flag during a grand opening ceremony for Sweden-based Echandia on Tuesday, July 30, 2024, in Marysville, Washington. (Ryan Berry / The Herald)
Swedish battery maker opens first U.S. facility in Marysville

Echandia’s marine battery systems power everything from tug boats to passenger and car ferries.

Helion Energy CEO and co-founder David Kirtley talks to Governor Jay Inslee about Trenta, Helion’s 6th fusion prototype, during a tour of their facility on Tuesday, July 9, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
State grants Everett-based Helion a fusion energy license

The permit allows Helion to use radioactive materials to operate the company’s fusion generator.

People walk past the new J.sweets storefront in Alderwood Mall on Thursday, July 25, 2024, in Lynnwood, Washington. (Olivia Vanni / The Herald)
New Japanese-style sweets shop to open in Lynnwood

J. Sweets, offering traditional Japanese and western style treats opens, could open by early August at the Alderwood mall.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.