Probe into the influence of the acquisition of the

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A preliminary study on the impact of the acquisition of Tektronix on the pattern of instruments

recently, as the world's leading manufacturer of measuring instruments, especially oscilloscopes, Tektronix was offered by danahercorporat, which will enable China to acquire all of Tektronix's outstanding shares at US $38.00 per share among the growing middle class and influential western consumers, The total acquisition price is expected to be about 2.8 billion US dollars, including debt, transaction costs and deducting the cash obtained

Danaher group, as a giant in the field of precision instruments and automatic control in the United States, has owned the famous brand fluke of test instruments. After the acquisition of Tektronix, the group plans to merge it into the electronic test platform department and merge with Danaher's fluke and flukenetworks business departments to form a new test instrument platform. In view of the technical advantages of Tektronix in the field of oscilloscopes and high-end instruments and the important market share of both parties in the field of testing, the new Danaher electronic test platform will inevitably have an important impact on the old market pattern

in terms of market sales in 2006, Tektronix ranked fourth in the world with 1.04 billion, followed by fluke with 1.011 billion. The combined total sales revenue of the two was as high as 2.051 billion, which can already rank second in the field of electronic instruments before ADVANTEST, whose business declined in 2006. Of course, this is not the only ranking increase, because Danaher group also ranks fourth in the world in terms of analytical instruments and laboratory equipment. Therefore, although capturing Tektronix cannot make it further on this ranking, Danaher group has made it close to Agilent (group, including verige) in the ranking of world integrated instrument companies, ranking third in the global instrument industry. Of course, the latter ranking does not have much reference value, because analytical instruments and laboratory equipment are somewhat different from general electronic measurement, which is the main technology leader of Tektronix

what is the important impact of the new Danaher group electronic test platform including fluke and Tek brands after acquiring Tek on the test instrument industry? First of all, we still analyze from the enterprise scale. From the sales revenue growth data from 2005 to 2006, we can see that fluke's growth rate exceeded 7%, while Tektronix's growth rate was less than 1%. Therefore, if this trend continues, Tektronix may be surpassed by fluke even if it is not acquired this year. However, Tektronix's dominant industry is general oscilloscope, Fluke's focus is that the output of hand-held sensors only reflects the maximum and minimum values of experimental loads in the field of instruments and analytical instruments, so the combination of the two will at least not produce too many business conflicts. If calculated by simple addition, the sales revenue of both sides in 2007 is expected to reach about 2.1 billion, which can surpass advantage and become the second largest in the testing and measuring instrument industry, However, this position is still due to the continuous decline of ADVANTEST's business for two consecutive years. Such a new test and measurement instrument aircraft carrier will be born, which will inevitably have an impact on the entire instrument industry

we must examine which companies can maintain the leading position in the market as far as possible. In the ranking of analytical instruments and laboratory equipment enterprises, Thermo Fisher, a giant, does not seem to feel too much threat in terms of market share or technology. Although an instrument giant with an annual sales volume of more than 4billion appeared through mergers and acquisitions, the merger of the two sides seemed to have firmly controlled this field in their own hands as early as six months ago, After all, the overall performance of more than 10 billion yuan in 2006 and the strong growth momentum brought by thermo's technological advantages can not be changed by such an acquisition. Secondly, although Agilent is facing some pressure, it is not as prominent as expected. First of all, Agilent's comprehensive strength has not been partially surpassed by Danaher group instruments. In particular, Agilent's most important test system solution, especially its leading edge in communication, is obvious enough and maintains a good development momentum. A very important reason for the slow growth of Tech last year is the setback of communication solutions. However, Agilent will still feel the pressure of comprehensive competition. After all, as an instrument manufacturer, the new Danaher group will have the capital to compete with Agilent in many fields. In the past, the competition between the two sides was only in the field of analytical instruments. Now, through the acquisition of tektek, Danaher has undoubtedly changed the situation from zero to leading Agilent in the field of oscillograph, the main development direction of Agilent instruments. However, the Tektronix business and fluke under Danaher electronic test platform department will inevitably carry out the business integration process for a certain period of time, and both sides are not good at the system test scheme, so for Agilent, there is enough time to deal with the impact, especially to use the shock to speed up the pace of catching up in the oscilloscope field, so it is entirely possible to take advantage of the opportunity to achieve transcendence

after Agilent, appliedbiosystems and vwrinternational are already under Danaher in the field of analytical instruments, but the joining of Tektronix does not have a great impact on them because their business is not competitive. Avantest suffered a continuous decline in performance after rapid growth, but its ate equipment is still highly competitive, while its largest competitor Teradyne is just the opposite. After being surpassed, it fought back. Its sales revenue in 2006 increased by nearly 30% compared with that in 2005, with a significant growth momentum. Their markets are relatively stable, and they are not fluke Tek's main business scope, so the impact on both sides is not great

it is still some enterprises that are not as strong as these two companies that are really affected, especially considering that the integrated market strategy that Danaher may bring after the acquisition of Tektronix will affect the test instrument manufacturers in several key areas. Analyzing the motivation of Danaher group's acquisition of Tektronix may be a better entry point. For Danaher group, there are only two possibilities to acquire Tektronix: one is to integrate into the original business to improve the competitiveness and market position of the enterprise; the other is to cash out again after packaging and integration with some departments. From the current form, the cash out may not be too large, so integration will be danahe's main strategy after acquiring Tektronix. According to the current main business of Danaher group, electronic testing instruments, analytical instruments and automation equipment account for more than 75% of the business revenue, so the main integration will take place in these two areas. In Danaher's statement, it is planned to integrate Tektronix and fluke on an electronic measurement platform. According to previous cases of enterprise acquisitions, Tektronix will also penetrate and integrate with other major fields to a certain extent. Although Tektronix and fluke will operate independently in the short term, there will inevitably be some overall business planning under the operation of the same platform, especially giving full play to their respective advantages. Tektronix has a market leading position in the field of electronic test instruments such as oscilloscopes, while fluke's advantages are concentrated in portable instruments and electronic analysis instruments. The combination of the two sides will expand their product advantages in the field of industrial test and analysis, In particular, the brand image of Tektronix will effectively enhance Danaher's product competitiveness in the field of high-end industrial analysis, and may increase the new product application functions of Danaher electronic test platform. The original products of Tektronix will be closer to industrial applications, and may further reduce the investment in communication and other fields. After all, this is one of the reasons why Tektronix did not achieve good business performance last year. Moreover, Danaher's advantages in signal analysis and other fields such as transmission and automatic control will be helped by Tektronix, especially to enhance Danaher's strength in product research and development in the field of high-end automatic control. Next, Tektronix will have the opportunity and conditions to further expand its business in the industrial field. In the past, the electronic measurement department of danahe group has a good industrial foundation, but there are still some problems in the manufacturing of high-end instruments, such as poor brand recognition and insufficient system integration. This time, with Tektronix's traditional advantages in these aspects, it is bound to greatly improve the product image and market competitiveness of the whole group. Therefore, in terms of industrial automation, automatic control and analytical instruments, the original group businesses of Tektronix and Danaher are still highly complementary, and it is possible to upgrade to a new level of products through integration. In particular, the application in industrial control will gradually occupy the proportion of applications in electronic systems, and become another major field of Tektronix research and development

therefore, from this point of view, it is those manufacturers who have concentrated their product range on automatic control and electronic measurement in the industrial field that are really impacted. After all, although there is less than one competitor, the competitors have become larger, and they have combined the integrated scheme of instrument and industry. This is not only a major trend of the development of the testing and analysis industry with the support of the platform, It is also the place where neither Tektronix nor fluke has done enough before

in order to maintain their respective profitability, Danaher will continue to maintain the independent operation of Tektronix and fluke in the short term, but it is believed that the two brands based on a unified platform will definitely carry out overall planning and integration. However, this integration must overcome the six major technical difficulties before and after the precise smelting of micro alloy components, the control of machinability of cold drawn steel wire, and the increase of corrosion and wear resistance of materials. In particular, Danaher's own cash flow is not enough to deal with the 2.8 billion acquisition expenditure at one time from the financial report. Therefore, if the form of stock exchange is not adopted, it will inevitably lead to the short-term financial contraction of Danaher group, This will delay the business integration process to maintain the rapid cash flow of the original Tektronix business. Since the news came out on the 15th, Danaher group's stock has not shown a strong application. Although it has something to do with the overall shock of the U.S. stock market, considering the expected upward reaction of the stock market after the acquisition, the analysis agency is not highly optimistic about this acquisition, which is similar to the original trend of AMD's acquisition of ATI

at present, we can only briefly analyze some simple possible impacts after the acquisition of Tektronix. However, since this acquisition has not been fully completed, there are still many variables, and Danaher group may also make new adjustments and plans about the future trend of Tektronix, so the specific impact still needs us to wait and see. However, the impact on the industry may begin to appear as early as the second half of 2008, and the current time may be an important opportunity for those enterprises that may be impacted in the future. It is best to seize the current opportunity and seize the market owned by Tektronix as much as possible to ensure that the impact of integrated enterprises will be minimized in the future

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