Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
So what: Merger Monday was back in force today, and this $2.1 billion cash deal will give Thermo Fisher access to environmental analysis, and food and water testing markets. The offer is for $118.50 per share, and Dionex has already almost reached that share price in trading today.
Now what: Usually, mergers will see the acquiring company's shares fall, but Thermo Fisher shares are up 4% today, indicating the market is loving this deal. There may not be much upside left for Dionex, but Thermo Fisher shares look to be priced right with a 13.7 forward price/earnings ratio before this acquisition. Given the positive market reaction today, I think this Motley Fool Inside Value pick has more room to run.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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