Agilent Technologies Inc.
) recently completed its acquisition of a Danish cancer diagnostics
company, Dako, for $2.2 billion (on a debt-free basis). Agilent
called this all-cash deal the largest in its history.
Denmark-based Dako provides antibodies, scientific instruments and
software mainly to cancer-related diagnostic labs and also
collaborates with drug companies for the development of methods to
identify patients likely to benefit from certain therapies. The
company reported annual revenues of approximately $240 million in
Upon closure, Agilent stated that Dako would form its fourth
business reporting segment - the Diagnostics and Genomics Group.
Earlier, Agilent reported in three segments: Chemical Analysis,
Life Sciences and Electronic Measurement.
The acquisition will complement Agilent's broad portfolio of life
science products. The segment has been improving over the last few
quarters with the launch of some new products. In the second
quarter, the segment generated 27% of total revenue, which was up
1.7% sequentially and 1.1% year over year, driven by strength in
the pharma/biotech market.
The latest acquisition will help Agilent expand its global market
share and benefit from Dako's extensive product portfolio.
Agilent's 2010 acquisition of Varian was a big boost to its
Chemical Analysis Group, since most of the Varian products were
However, Agilent's Life Sciences segment also gained, since a
few products were included here as well. We believe that both the
Dako and Varian acquisitions were prudent, since health care
research is a booming market and one that should go on growing in
the foreseeable future.
AGILENT TECH (A): Free Stock Analysis Report
DANAHER CORP (DHR): Free Stock Analysis Report
TERADYNE INC (TER): Free Stock Analysis Report
THERMO FISHER (TMO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Agilent's new products, testing systems and acquisitions help it to
deliver improved results and maintain its position in an
increasingly competitive market. Agilent's second quarter 2012
earnings exceeded the Zacks Consensus Estimate by 5 cents (6.8%),
driven by strength across multiple end markets and product lines.
Agilent is about to report its third quarter earnings on August 15,
and expects total revenue to be up 2-3% sequentially.
Management is trying to grow its market share by introducing new
products and ward off competition from the likes of
Thermo Fisher Scientific, Inc.
Currently, Agilent has a Zacks Rank #2, implying a short-term Buy