Danaher Corporation – which owns inkjet marking company Videojet and packaging software developer Esko – is to buy X-Rite, the densitometry and colour measurement company which also owns Pantone.

The deal, which values X-Rite at about US$625 million, includes a cash tender offer for all of the outstanding shares of common stock at $5.55 per share. It includes debt assumed and is net of cash acquired.

X-Rite will become part of Danaher's Product Identification group.

Executive vice president William Daniel is excited about the opportunity to acquire two premier brands: “Colour measurement is an attractive market adjacency to our existing Product Identification businesses,” he says. “X-Rite's colour measurement technologies complement Esko's digital packaging design capabilities to provide customers with a full range of solutions to meet their packaging and design needs. 

“Along with Videojet and Esko, we believe X-Rite and Pantone will further Danaher's leading position in the product identification industry and present an attractive value creation opportunity.”

X-Rite’s directors have unanimously recommended acceptance and will tender their shares into the offer, which is subject to customary conditions. Shareholders representing approximately 68 per cent of the voting power of X-Rite's outstanding shares intend to tender their shares into the offer, the company says.

The transaction is expected to be completed during the second quarter of 2012.