On October 15, electronic test solutions company Tektronix announced it was being acquired by multi-national firm Danaher (News - Alert). Just over a month later, on November 21, the deal (valued at approximately $2.8 billion) officially closed with Tektronix becoming part of Danaher’s electronic test group.

 

When the deal was first announced, some in the test and monitoring industry were concerned that Danaher’s acquisition of Tektronix (News - Alert) would herald the end of an era; that Tektronix (in operation as a public firm since the 1960s) would disappear, absorbed by its new parent company.

 

“That's just not true,” said Rich McBee, senior vice president and general manager at Tektronix’s communications business division, during a conversation with TMCnet. “Tektronix will continue to serve the same customers, focusing on delivering products and solving their needs.”

 

McBee explained that Danaher, a multi-national company with six operating groups and a total of 60 operating companies in its fold, will keep the Tektronix brand intact, operating the company as a wholly-owned subsidiary. The biggest change is that Tektronix is no longer a public company.

 

“All the investor relations matters will be handled by Danaher, which is a New York Stock Exchange listed company,” McBee told TMCnet.

 

This frees Tektronix to focus on its core competencies: delivering test, measurement and monitoring solutions and services to the computer, consumer electronics and education industries.

 

McBee said the acquisition by Danaher brings two key advantages to Tektronix. One is the incorporation of Danaher Business Systems, a series of tools and best practices shared across the firm’s 60 operating companies to enhance operational excellence.

 

The other thing Danaher brings to the table is a significant amount of acquisition capacity. In fact, acquisitions is one of Danaher’s key growth strategies. McBee explained that Danaher completes a number of acquisitions each year, buying high-quality companies that enhance its existing operations. This strategy and capacity will enable Tektronix to continue growing not only organically but by acquiring new technologies as well.

 

“Danaher’s large market capitalization will allow Tektronix to execute its strategy faster through acquisitions,” McBee said. “We fully expect them to add companies to the Tektronix operating company.”

 

The acquisition strategy has allowed Danaher to build a solid portfolio of companies in its electronic test group. McBee said that, while there is virtually no overlap between companies in this group, operating companies have been picked thoughtfully to complement one another.

 

One of the companies that is complementarily-aligned with Tektronix is Fluke, which makes handheld, battery-operated tools used by craftspeople and service technicians. Another company, Fluke Networks (News - Alert), focuses on handheld tools for the communications industry (the type of products used by technicians who install services in customer homes). Another small enterprise business offers IP router monitoring products.

 

Tektronix, meanwhile, offers benchmark and performance-based instruments. By including the company in its test group, McBee said, Danaher is able to offer a complete, seamless line of solutions—from the technician’s belt to the lab to the service center depot to the deployment/monitoring of large communications networks.

 

All of this adds up to some pretty exciting opportunities for Tektronix.

 

“Tektronix will continue to move into adjacent markets,” McBee told TMCne. “But we won't get out of our core markets; you're not going to see us get out of test, measurement and monitoring solutions. We're excited about the opportunities going forward.”