PerkinElmer (PKI) announced that it has completed the acquisition of BioLegend, a global developer and manufacturer of antibodies and reagents. The cash and stock deal worth $5.25 billion was announced in July 2021. PerkinElmer provides solutions to diagnostics, life science, food and applied markets.
With this deal, PerkinElmer will be able to expand its life science franchise, particularly in the areas like cytometry, proteogenomics, multiplex assays and bioprocessing.
Earlier, PerkinElmer said that the acquisition might be accretive to its revenues and margin profile. Following the completion of the deal, about $0.30 of adjusted EPS accretion is expected in the first year and over $0.50 in the second year. (See PerkinElmer stock chart on TipRanks)
The President and CEO of PerkinElmer, Prahlad Singh, said, “We also look forward to BioLegend significantly enhancing our leading reagents portfolio as we partner together to innovate and advance science for our customers.”
Two months ago, Evercore ISI analyst Vijay Kumar maintained a Buy rating on the stock and raised the price target to $190 from $174. The new price target implies 1.3% upside potential from current level.
“The BioLegend deal could transform the company’s DAS segment into a high-single digit percentage grower and the multiple paid was reasonable,” the analyst said.
Consensus among analysts is a Strong Buy based on 5 Buys and 1 Hold. The average PerkinElmer price target of $174.50 implies downside potential of 7%.
TipRanks data shows that financial blogger opinions are 100% Bullish on PKI, compared to the sector average of 71%.
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