Tuesday, May 22, 2012

Investopedia: Agilent Pays A Hefty Price For A Fixer-Upper Diagnostics Company

It was just a day ago that I wrote, in reference to Agilent's (NYSE:A) probable M&A strategy, "I would be surprised if the company targeted sequencing or diagnostics." Well, color me surprised, as Agilent announced on the morning of May 17 that it will be acquiring Danish oncology diagnostic company Dako for $2.2 billion in cash.

Not only is this the company's largest deal to date, but it represents an entry into a new market - the multi-billion dollar world of diagnostics. While the growth potential in diagnostics explains Agilent's interest (to say nothing of the high-margin consumables sales that go with it), Agilent is paying a hefty price for a company that badly needs to refresh its product line-up and lags some very large competitors.

Please read more here:
http://stocks.investopedia.com/stock-analysis/2012/Agilent-Pays-A-Hefty-Price-For-A-Fixer-Upper-Diagnostics-Company-A-DHR-ABT-AMGN-HOLX0522.aspx

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