Back to top

Image: Bigstock

Agilent Completes AATI Acquisition, Strengthens Portfolio

Read MoreHide Full Article

Agilent Technologies, Inc. (A - Free Report) recently announced that it has successfully closed the acquisition of privately-held Advanced Analytical Technologies (“AATI”) for $250 million.

Post acquisition, AATI’s employees will join Agilent’s new Biomolecular Analysis Division within its Diagnostics and Genomics Group. In addition, the new division will consist of Agilent’s existing microfluidics business that was previously part of Agilent’s Life Sciences and Applied Markets Group.

The company recently announced fiscal second-quarter results on May 14. Following the announcement, the company’s share price fell 10%.

Shares of Agilent have slightly underperformed its industry on a year-to-date basis. The stock has registered a loss of 6.26% against the industry’s growth of 2.26%.

Deal Details

As revealed, Ankeny, IA-based AATI is a developer of automated nucleic acid analysis systems using capillary electrophoresis methods. The company provides workflow solutions that include instruments, software and consumables. The solutions are extensively used for medical and molecular diagnostics for both commercial and research purposes.

The deal will strengthen Agilent’s capillary electrophoresis solutions portfolio. It will also expand the company’s footprint in varied industries like pharmaceutical, life sciences, agriculture and biofuels.

Acquisitions — Key Catalyst

Over the past few years, strategic acquisitions have played an important role in shaping Agilent’s growth trajectory.

Continuous strategic acquisitions should support Agilent to expand its product offerings, strengthen its footprint in the international markets and build customer base.

However, these acquisitions will likely keep Agilent’s operating margins under pressure, as it requires a significant amount of new investments.

Zacks Rank & Stocks to Consider

Currently, Agilent carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the technology sector are Littelfuse, Inc. (LFUS - Free Report) , Groupon, Inc. (GRPN - Free Report) , both sporting a Zacks Rank #1 (Strong Buy), while Amazon.com, Inc. (AMZN - Free Report) carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings per share growth rate for Littelfuse, SMC and Amazon is projected at 12%, 6.5% and 30.2%, respectively.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.     

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.  

See the pot trades we're targeting>>

Published in