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Agilent (A) Buys Belgium-Based Multiplicom for 68 Million Euro

Agilent Technologies Inc.A has agreed to acquire Multiplicom for approximately €68 million in cash. The acquisition will likely be completed by mid-January, subject to local laws and regulations and customary closing conditions.

Multiplicomis headquartered in Niel, Belgium. The company develops, manufactures and commercializes molecular-diagnostic solutions which enables personalized medicine. These solutions enable clinical labs to identify the DNA variants associated with a genetic disease or predisposition in patients. It may also help labs to identify congenital defects early in pregnancy.

Upon closure of the deal, all 90 Multiplicom employees are expected to join Agilent.

The acquisition will allow Agilent to strengthen its presence in the genomics market. The deal complements Agilent's own product expansion efforts and will help it to offer better services to its customers. Additionally, the deal will strengthen Agilent's presence in the growing European market.

The vice president and general manager of Agilent's Genomics Division, Herman Verrelst said, "The acquisition of Multiplicom significantly strengthens our presence in the genomics market." "Multiplicom's products and technology help expand our target-enrichment portfolio and enhance our next-generation sequencing workflow capabilities - providing immediate scale in adjacent markets."

However shares of Agilent have been underperforming the industry on a year-to-date basis. The stock has returned 9.95% compared with the Zacks Electronic Test Equipment industry's gain of 21.10%.

Our Take

Agilent Technologies is a broad-based original equipment manufacturer of test and measurement equipment. The company has been supplementing organizational growth with strategic acquisitions and collaborations.

In June, the company agreed to acquire the assets of the privately held iLab Solutions, based in Boston, to expand its reach in cloud-based laboratory management software.

In late 2015, Agilent completed the purchase of Seahorse Bioscience, a supplier of instruments and evaluation kits for measuring cell metabolism and bioenergetics, for about $235 million in cash. The acquisition enabled Agilent to expand its reach in metabolomics and disease research space.

We believe Agilent's acquisitions, new products and testing systems will help it to grow as a formidable player in its space.

AGILENT TECH Price and Consensus

AGILENT TECH Price and Consensus | AGILENT TECH Quote

Currently, Agilent has a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry are Cognex Corporation CGNX , TiVo Corporation TIVO and Itron, Inc. ITRI , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Cognex Corporation delivered a positive earnings surprise of 24.92% in the trailing four quarters.

Itron, Inc. delivered a positive earnings surprise of 30.55%, on average, in the trailing four quarters.

TiVo Corporation delivered a positive earnings surprise of 97.76%, on average, in the trailing four quarters.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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