Agilent (A) Completes $235M Seahorse Bioscience Buyout

Zacks

Agilent Technologies Inc. A recently completed the acquisition of Seahorse Bioscience in a cash deal worth $235 million. The deal was announced on Sep 9.

Agilent supplies instruments, software, services and consumables for the entire laboratory workflow in more than 100 countries.

Seahorse Bioscience is a supplier of instruments and evaluation kits for measuring cell metabolism and bioenergetics, and is known for its XF metabolic analyzers and stress test kits.

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

According to Seahorse Bioscience, the XF technology has been utilized for research in a wide range of diseases and disorders.

Post acquisition, all 200 employees of Seahorse Bioscience will become part of the Mass Spectrometry Division of Agilent’s Life Sciences and Applied Markets Group (LSAG).

Agilent’s revenues in third-quarter 2015 were up 5.3% sequentially and 0.5% year over year. LSAG was the largest contributor and accounted for $511 million or 50.4% of the total revenue, up 1% year over year. The improvement was driven by strong performance in pharma, environmental and forensics markets.

Revenue growth was driven by robust performance by all the regions and management stated that logistics efficiencies helped shipments. Also, earnings per share of 44 cents beat the Zacks Consensus Estimate by 3 cents and came above the guided range of 38–42 cents.

Other Stocks to Consider

Agilent currently has a Zacks Rank #2 (Buy). Other well-ranked stocks in the same industry are JD.com, Inc. JD, Expedia Inc. EXPE and MaxLinear, Inc. MXL. While JD.com and Expedia sport a Zacks Rank #1 (Strong Buy), MaxLinear carries a Zacks Rank #2.

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