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Monday, October 13, 2014

Danaher to combine communications business with NetScout, (NYSE: DHR), (NASDAQ: NTCT)

U.S. healthcare technology group Danaher Corp said it would become majority shareholder in network monitoring company NetScout Systems Inc through a stock deal that involves the merger of Danaher's communications business with NetScout.Under the deal, Danaher shareholders will get NetScout shares worth $2.6 billion that will give them a 59.5 percent stake in the combined company.Danaher will create a wholly owned subsidiary to hold its communications business and will distribute ownership of the business to its shareholders.The combination is structured as a Reverse Morris Trust transaction, which allows a company to sell a unit in a tax-efficient manner by merging it with a smaller company.

Danaher Corporation (Danaher) designs, manufactures and markets professional, medical, industrial and commercial products and services. Shares of DHR fell by 1.25% or $-0.91/share to $71.86. In the past year, the shares have traded as low as $68.80 and as high as $81.14. On average, 3173050 shares of DHR exchange hands on a given day and today's volume is recorded at 6193261.

NetScout Systems, Inc. (NetScout), designs, develops, manufactures, markets, licenses, sells and supports application and network performance management and service assurance solutions focused on assuring service delivery quality, performance and availability for some of the complex Internet protocol (IP) based service delivery environments. Shares of NTCT fell by 4.18% or $-1.83/share to $41.91. In the past year, the shares have traded as low as $24.75 and as high as $48.13. On average, 215346 shares of NTCT exchange hands on a given day and today's volume is recorded at 275975.



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