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Agilent's AATI Acquisition to Strengthen Portfolio, Footprint

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Agilent Technologies, Inc. (A - Free Report) entered into a definitive agreement to acquire privately held Advanced Analytical Technologies (“AATI”) for $250 million.

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 also expands the company’s footprint in varied industries like pharmaceutical, life sciences, agriculture and biofuels.

Agilent shares closed at $69.70 on Mar 7, up 2.3%.

Acquisitions — Key Catalyst

Over the past few years, strategic acquisitions have played an important role in shaping Agilent’s growth trajectory. The buyouts of Multiplicom NV (January 2017), Cobalt Light Systems (July 2017), Seahorse Bioscience and iLab Solutions (2016) has expanded its product 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 iLab Solutions acquisition enabled the company to provide cloud-based laboratory management software.

Moreover, Seahorse Bioscience’s technology was a strategic fit for Agilent’s market-leading separations and mass spectrometry solutions, especially those that cater to metabolomics and disease research in pharma.

In the last quarter, Agilent acquired Luxcel Biosciences, a developer of real-time fluorescence plate-readers based in-vitro cell assay kits. The technology targets important applications, namely cell metabolism, bioenergetics, drug toxicity, and hypoxia and oxidative stress. The acquisition expands Agilent’s presence in the high-growth cell analysis market.

 

Zacks Rank & Stocks to Consider

Currently, Agilent carries a Zacks Rank #3 (Hold).

Investors interested in the broader technology sector can consider Teradyne (TER - Free Report) , AMETEK (AME - Free Report) and Fortive Corporation (FTV - Free Report) . While Teradyne sports a Zacks Rank #1 (Strong Buy), AMETEK and Fortive carry a Zacks Rank #2 (Buy), each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Teradyne, AMETEK and Fortive are currently pegged at 12%, 11.5% and 9.69%, respectively.

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