Danaher is buying molecular diagnostics company Cepheid in a deal valued at about $4 billion.
Danaher Corp., an industrial and medical device maker, will pay $53 per Cepheid share. That's an approximately 54 percent premium to the Sunnyvale, California company's Friday closing price of $34.42.
Cepheid Chairman and CEO John Bishop said in a company release Tuesday that the buyout will allow the business to reach customers and patients faster than it could have on its own.
Cepheid will join Danaher's diagnostics unit.
The boards of both companies approved the deal, which is expected to close in the fourth quarter. It still needs approval from Cepheid shareholders.
Shares of Cepheid are up more than 20 percent in premarket trading, while Danaher's stock is down slightly.