D.C.-based Danaher Corporation (NYSE:DHR) wants to buy Grand Rapids, MI-based X-Rite, Incorporated (NASDAQ: XRIT) and has made a cash offer to acquire all outstanding shares of the technology company.
Danaher would pay $5.55 per share for X-Rite stock for a total offer price of approximately $625 million including debt.
X-Rite specializes in color measurement technology and includes design industry color provider Pantone. If the merger goes through X-Rite would become part of Danaher's Product Identification group.
"We are excited about the opportunity to acquire two premier brands in X-Rite and Pantone," stated William K. Daniel II, Executive Vice President of Danaher. "Color measurement is an attractive market adjacency to our existing Product Identification businesses. X-Rite's color measurement technologies complement Esko's digital packaging design capabilities to provide customers with a full range of solutions to meet their packaging and design needs. Along with Videojet and Esko, we believe X-Rite and Pantone will further Danaher's leading position in the Product Identification industry and present an attractive value creation opportunity."
X-Rite Board of Directors has agreed to accept and recommend the offer to shareholders. The transaction is expected to be completed by the second quarter of 2012.