Danaher Purchases Iris For $355 Million In Expansion Bid

The healthcare sector is picking up due to several factors, and this increase in activity has proven to be a boon for many healthcare related companies. Danaher Corporation (NYSE:DHR) is just one of the companies which has profited from this mini boom in the healthcare field.

Danaher Purchases Iris For $355 Million In Expansion Bid

According to Reuters, Danaher Corporation (NYSE:DHR) has announced plans to purchase IRIS International, Inc. (NASDAQ:IRIS)for $355 million, which will add to its expanding medical diagnostics branch. This is not the first such acquisition for Danaher Corporation (NYSE:DHR), as Reuters points out, the company acquired Beckman Coulter just last year. The $5.8 billion purchase of this company, helped double second quarter sales for Danaher Corporation (NYSE:DHR)’s life sciences and diagnostics segments.

Danaher Corporation (NYSE:DHR) has been very aggressive this year as well, having bought out 8 companies since the first of the year. The medical giant has spent almost $1 billion so far, and claims to have upt to $5 billion in its coffers, slated for this type of buyout and acquisition. This $5 billion buyout fund may be spent over the next two years.

According to reports, Danaher Corporation (NYSE:DHR) will pay $19.50 cash for each share of IRIS International, Inc. (NASDAQ:IRIS), which is a 45.3 % premium on the stock’s Friday closing price. IRIS International, Inc. (NASDAQ:IRIS) makes tests for analyzing urine and blood samples, and will be woven into the company’s Beckman Coulter Diagnostics unit. This purchase will give the diagnostics unit of Danaher Corporation (NYSE:DHR), an even bigger push towards profit. The addition of IRIS International, Inc. (NASDAQ:IRIS) will allow the company to tap into markets it has not yet reached, and the news of the buyout could prove to be a major plus for Danaher Corporation (NYSE:DHR) in the near future.

Danaher Corporation (NYSE:DHR) shares have remained flat on the news, while IRIS International, Inc. (NASDAQ:IRIS) shares jumped by 45% on the news of the deal, which should close in the fourth quarter.