Agilent Technologies Inc. (A - Free Report) recently announced an agreement to acquire the assets of the privately-held ABC Instrumentación Analítica (ABCIA) based in Mexico. The deal is expected to close on Oct 1, subject to customary closing conditions. The financial details of the acquisition were kept confidential.
Established in 1986, ABCIA is a distributor of analytical solutions, including Agilent's chemical analysis and life science products. Additionally, it provides training to customers for Agilent's products, thereby providing sales and application support to the company.
Upon the closure of the deal, about 30 ABCIA employees are expected to join Agilent.
The acquisition will allow Agilent to strengthen its partnership with ABCIA and widen its growth prospects. It complements Agilent’s own sales efforts and will help it to offer better services to its customers. Additionally, the deal will strengthen Agilent’s presence in the rapidly growing Mexican market.
According to a latest research report from TechNavio's analysts, the Global Liquid Analytical Instrument market is expected to grow at a CAGR of 6.39% over the period 2012-2016 driven by the growing need for better analysis. We believe Agilent’s acquisitions, new products and testing systems will help it to benefit from this growth.
Agilent Technologies is a broad-based original equipment manufacturer of test and measurement equipment. The company’s third-quarter revenues were down 4.6% sequentially and 4.1% year over year to $1.65 billion. However, earnings per share of 68 cents exceeded the Zacks Consensus Estimate by 6 cents or 9.6%, helped by solid cost management.
Currently, Agilent has a Zacks Rank #3 (Hold). Other stocks that are performing well at current levels include SanDisk , Syntel Inc. (SYNT - Free Report) and Silicom Ltd. , all carrying a Zacks Rank #1 (Strong Buy).