Cepheid (NASDAQ:CPHD) announced that it has entered into a definitive agreement with Danaher Corporation (NYSE: DHR) under which Danaher will acquire all of the outstanding shares of Cepheid common stock for $53 per share in cash, or a total enterprise value of approximately $4 billion including indebtedness and net of acquired cash.
“Cepheid’s vision has always been to enable as many people as possible to have access to powerful molecular diagnostic tests that provide critical information on a timely basis to guide treatment and patient management,” said John Bishop, Cepheid’s Chairman and Chief Executive Officer. “As a standalone company for the last 20 years, Cepheid has been a leading innovator in molecular diagnostics, to date installing more than 11,000 GeneXpert Systems, and delivering tens of millions of tests spanning healthcare associated infections, critical infectious disease, sexual health, and virology.”
“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,” continued Bishop. “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.”
The consideration represents approximately a 54% percent premium to Cepheid’s common stock over the closing price of $34.42 on September 2, 2016. Cepheid’s Board of Directors unanimously approved the transaction, which is expected to close in the fourth quarter of 2016, subject toCepheid shareholder approval, clearances by the relevant regulatory authorities and other customary closing conditions.
Fenwick & West LLP is acting as Cepheid’s legal advisor for this transaction, and Goldman, Sachs & Co. is acting as Cepheid’s exclusive financial advisor. (Original Source)
Shares of Cepheid closed last Friday at $34.42, up $0.16 or 0.47%. CPHD has a 1-year high of $53.19 and a 1-year low of $25.09. The stock’s 50-day moving average is $34.93 and its 200-day moving average is $31.90.
On the ratings front, Cepheid has been the subject of a number of recent research reports. In a report issued on August 16, Jefferies analyst Brandon Couillard reiterated a Hold rating on CPHD. Separately, on July 31, Canaccord’s Mark Massaro reiterated a Hold rating on the stock and has a price target of $36.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Brandon Couillard and Mark Massaro have a total average return of 13.3% and -2.3% respectively. Couillard has a success rate of 73.1% and is ranked #152 out of 4147 analysts, while Massaro has a success rate of 45.4% and is ranked #3579.
The street is mostly Neutral on CPHD stock. Out of 8 analysts who cover the stock, 6 suggest a Hold rating and 2 recommend to Buy the stock. The 12-month average price target assigned to the stock is $40.33, which implies an upside of 17.2% from current levels.
Cepheid operates as a molecular diagnostics company, which develops, manufactures, and markets fully-integrated systems for testing in the clinical market, as well as for application in the company’s legacy industrial, biothreat and partner markets. The company’s systems enable molecular testing for organisms and genetic-based diseases by automating otherwise complex manual laboratory procedures. It operates through two principal systems: GeneXpert and SmartCycler. The GeneXpert system offering in the clinical market, integrates sample preparation in addition to DNA amplification and detection. This system designed for a broad range of user types ranging from reference laboratories and hospital central laboratories to satellite testing locations, such as emergency departments and intensive care units within hospitals and doctors’ offices. The SmartCycler system integrates DNA amplification and detection to allow rapid analysis of a sample.