Danaher To Merge Communications Business With NetScout In Tax-free Transaction

(RTTNews) - Danaher Corp. (DHR) announced that it has agreed to combine its Communications business with NetScout Systems, Inc. (NTCT) in a tax-free transaction, creating a premier global provider of network management tools and security solutions for carrier and enterprise customers.

At the closing of the transaction, Danaher shareholders will receive about 60% of the issued and outstanding shares of NetScout after giving effect to the transaction. At NetScout's closing price of $41.91 on October 10, 2014, the transaction values Danaher's Communications business at $2.6 billion.

Included in Danaher's Communications business is the market-leading brands of Tektronix Communications, Fluke Networks, and Arbor Networks. The data cabling tools business and carrier service provider tools business of Fluke Networks will be excluded from the transaction.

The transaction is expected to close in 2015. Until such time, the Communications business will continue to operate separately from NetScout, the company stated.

Further, Danaher said it expects adjusted net earnings per share of approximately $0.90 and core revenue growth of approximately 3% for the third quarter 2014. Analysts currently expect earnings of $0.89 per share.