Agilent To Acquire BioTek, Cell Analysis Portfolio To Expand

Agilent Technologies, Inc. (NYSE:A) has entered into a definitive agreement to acquire Winooski, VT-based BioTek Instruments, Inc., a provider of life science instrumentation, in a bid to expand presence in life science research space further.

While the acquisition is worth $1.165 billion, considering tax benefits it comes in at $1.05 billion. Further, the deal is anticipated to conclude in Agilent’s fourth-quarter fiscal 2019.

BioTek’s product portfolio, which comprises microplate readers, washers, dispensers, cell imaging systems, automated incubators and stackers, will strengthen Agilent’s offerings related to live cell analysis as these product lines aid in quantification of biomolecules, biomolecular interactions and cellular structure.

Moreover, the products help in conducting cost-effective analysis across diverse applications. Further, they enable the company to deliver a range of differentiated workflows.

All these are expected to bolster Agilent’s presence in the booming immuno-oncology and immunotherapy markets.

Buyout to Aid Growth

BioTek’s products are likely to drive customer momentum of Agilent and aid it in winning customers who are involved in biopharma, academia and research activities in complex cellular environments and interactions.

Consequently, this is likely to bolster the performance of the company’s Life Sciences & Applied Markets Group (LSAG) and accelerate revenues generation within the segment which is largest contributor to total revenues. We note that LSAG accounted for 46% of fiscal 2018 revenues.

Additionally, management believes this buyout to be accretive, which is likely to contribute $0.02-$0.04 to non-GAAP earnings per share for fiscal 2020.

Consequently, the buyout is likely to help Agilent in gaining traction among the investors.

Coming to the price performance, shares of Agilent have returned 13.2% over a year, outperforming the Agilent Technologies, Inc. Quote