Why These Stocks Are in Spotlight Today

Danaher Expands
Two months after spinning off some of its test & measurement/industrial assets, Danaher Corporation (NYSE:DHR) is buying Cepheid (NASDAQ:CPHD) for $53 per share in cash, which represents an enterprise value of around $4 billion. Cepheid’s board has already unanimously approved the transaction, which should close in the fourth quarter. Cepheid management said the following about the reason for the sale:

“Looking forward as a part of Danaher and its $5 billion Diagnostics platform, we believe that Cepheid will be able to reach an extended level of customers and patients more quickly than we could have on a standalone basis. Our employees will have more opportunities as part of a global science and technology company that shares Cepheid’s commitment to innovation, and also has the capability to help accelerate expansion of our global market position.”

Predictably, Cepheid shares are up by 52% in morning trading while Danaher’s shares are relatively flat. Our data shows that smart money investors were more bullish on both companies in the second quarter. A total of 54 funds tracked by us owned shares of Danaher Corporation (NYSE:DHR) at the end of June, up by eight over the quarter, while 17 investors were long Cepheid (NASDAQ:CPHD), compared to 13 funds at the end of March

Disclosure: none