MDZ Mds

MDS Inc. (MDZ) reached a settlement deal under which PerkinElmer Inc. (PKI) has agreed to drop its legal action over the proposed sale of MDS's analytical technologies business to Danaher Corp. (DHR).

Specific terms of the settlement weren't disclosed.

In early December, PerkinElmer filed a notice with the Ontario Superior Court of Justice seeking alternatives to the planned sale to Danaher. One such alternative was an injunction preventing the deal. A court hearing was set for later Monday.

MDS is in the process of breaking itself apart to focus solely on its Nordion unit. It has agreed to sell its analytical technologies business to Danaher for US$650 million, a deal it expects to close before the end of the first quarter.

MDS has a joint venture with PerkinElmer for the development, manufacture and sale of plasma mass spectrometers. It stake in the joint venture is part of the sale to Danaher.

-By Judy McKinnon, Dow Jones Newswires; 416-306-2100; judy.mckinnon@dowjones.com