Beckman Coulter Deals for Biosite

The pact is worth $1.55 billion.
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Beckman Coulter

(BEC)

slumped 6% Monday after the maker of medical testing equipment announced plans to acquire

Biosite

(BSTE)

.

The deal for Biosite, a company involved in medical diagnostics, is valued at $85 a share, or $1.55 billion in total.

Beckman said the transaction should immediately accelerate its revenue growth and improve operating margins. The purchase will start adding to net earnings in 2008. The company also said it remains on track to achieve its full-year outlook for 2007.

Shares of Beckman were dropping $4.08 to $63. Meanwhile, Biosite was jumping $28.62, or 52%, to $84.