BTIG Sees Another Bidder For Cepheid 'Unlikely'

"Though the purchase price is essentially in line with CPHD's 52-week high ($53.19), we think its implied multiple of ~6x EV/NTM Sales is fair. We note that Cepheid's average EV/NTM Sales multiple is ~5.7x on a 10-year basis and ~6.1x on a five-year basis," analyst Karen Koski wrote in a note.

Koski also said there will be no anti-trust/Federal Trade Commission (FTC) issues over the deal given relatively limited product overlap.

Meanwhile, the analyst noted that Cepheid's senior leaders, engineers and sales people would need to be on board for Danaher to reap the benefits.

Related Link: Cepheid Announces FDA To Allow Expanded Claims For The Xpert TV Assay Urine Test

"Given DHR's organizational structure, we expect Cepheid to enjoy the necessary flexibility to operate independently, yet still benefit from R&D and commercial collaborations with DHR's other diagnostics businesses," Koski added.

Koski has downgraded Cepheid to Neutral following the takeover deal.

Shares of Cepheid closed Tuesday's regular trading at $52.53 and were flat on the day Wednesday at time of writing.

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