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Agilent (A) Completes Genohm Buyout, Strengthens Portfolio

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Agilent Technologies Inc. (A - Free Report) recently announced that it successfully closed the acquisition of Switzerland-based Genohm on May 14. The financial details of the acquisition have been kept confidential.

The company recently announced fiscal second-quarter results on May 14. Following the announcement, the company’s share price fell 10%. Also, shares of Agilent have slightly underperformed its industry in the 12-month period. The stock has returned 9.99% compared with the industry’s gain of 17.94%.

Deal Details

As revealed, Genohm provides cloud-based solutions to digitize its customers’ lab workflow. Its main laboratory software automation suite, SLIMS is a digital platform that provides laboratories with laboratory information management system (LIMS) and electronic lab notebook (ELN) environment.

This automation software is mostly used in biobanks, research labs and next-gen sequencing facilities.

The acquisition will allow Agilent to widen its growth prospects, and further expand its software portfolio by adding LIMS and workflow management. It complements Agilent's own sales efforts and will help it to offer better services to its customers.

Acquisitions — Key Catalyst

Since the past few years, strategic acquisitions have been playing an important role in shaping Agilent’s growth trajectory. The buyouts of Lasergen (April 2018), Advanced Analytical Technologies (March 2018), Multiplicom NV (January 2017), Cobalt Light Systems (July 2017), Seahorse Bioscience and iLab Solutions (2016) has expanded its product portfolio.

The deal acquiring Advanced Analytical Technologies expanded Agilent’s capillary electrophoresis solutions portfolio. Multiplicom deal expanded Agilent’s genetic testing technology and product offerings. The Cobalt deal strengthened the company’s presence in the high-growth Raman spectroscopy market. The acquisition of iLab Solutions enabled the company to provide cloud-based laboratory management software.

We remain optimistic about Agilent's broad-based portfolio and increased focus on the segments with higher growth potential.

Zacks Rank & Stocks to Consider

Agilent has a Zacks Rank #3 (Hold). Other top-ranked stocks in the technology sector are Littelfuse, Inc. (LFUS - Free Report) , sporting a Zacks Rank #1 (Strong Buy), while SMC Corporation (SMCAY - Free Report) and Amazon.com, Inc. (AMZN - Free Report) , both carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings per share growth rate for Littelfuse, Amazon and SMC Corporation is projected at 12%, 30.2% and 13.7%, respectively.

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