Conglomerates Sector Review: Dover to Acquire Maag, GE and Microsoft Venture

Dover Corporation (NYSE:DOV) announced that it has signed a definitive agreement to acquire the Maag Group. Maag, which is headquartered in Zurich, Switzerland, will be part of Downers Grove, Illinois based Pump Solutions Group, or PSG, within the Fluid Solutions platform of Dover’s Engineered Systems segment. Terms of the transaction were not disclosed. Maag is a global leader in premium external gear pump technology and engineered integrated solutions for the polymer, plastic, chemical and petrochemical industries. Maag operates globally, with operations in Switzerland, Germany, the U.S., Italy, and China, as well as additional sales support offices around the world. Maag posted 2011 revenue of approximately $170M. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close at end of Q1 of 2012. Dover expects this acquisition to be slightly dilutive to 2012 continuing EPS due to integration and acquisition related costs.

The shares closed at $66.04, up $1.53, or 2.37%, on the day. Its market capitalization is $12.24 billion.

General Electric Company (NYSE:GE), through its healthcare IT business, and Microsoft (NASDAQ:MSFT) announced several developments for their planned 50-50 joint venture, including the intention to demonstrate future product capabilities at HIMSS12, the year’s largest healthcare IT trade show, later this month. The new company, to be named Caradigm, is expected to launch in 1H of 2012, pending regulatory approvals and customary closing conditions. Caradigm will be aimed at driving a paradigm shift in the delivery of care by enabling health systems and professionals to use real-time, systemwide intelligence to improve healthcare quality and the patient experience. Upon formation, the new company will develop and market an open, interoperable technology platform and collaborative clinical applications focused on enabling better population health management to improve outcomes and the economics of health and wellness.

The shares closed at $19.07, up $0.19, or 1.03%, on the day. Its market capitalization is $201.33 billion.

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