Dynatech to Be Acquired for $900 Million

Dynatech Corp. said a group of its executives and key employees and the investment firm Clayton, Dubilier & Rice Inc. will acquire the telecom electronics company for $49 a share, or about $900 million. Dynatech shares soared $10.19 to close at $46.94 on the NYSE on Monday. The investor group will pay shareholders of Burlington, Mass.-based Dynatech $47.75 in cash for each of their shares. After the transaction closes, about 300 Dynatech employees will own about a 25% fully diluted stake in the company, and Clayton Dubilier will hold about 70%. Dynatech makes testing equipment that firms use to install and maintain phone and data networks. It also makes portable computers used by service technicians doing repairs in the field. Clayton Dubilier of New York manages $1.5 billion for public and private investors.