- Waters ( NYSE: WAT ) is set to acquire the light scattering technology and advanced software solutions provider Wyatt Technology for $1.36B in cash, subject to certain adjustments.
- Waters will fund the acquisition through cash on its balance sheet and existing borrowing capacity available on its revolving credit facility.
- In connection with the acquisition, the company will suspend its share repurchase program through the remainder of 2023.
- The acquisition is expected to close in Q2.
- Wyatt, a privately-held family company, had reported 2022 revenues of ~$110M.
- The acquisition is immediately accretive to Waters' revenue growth and margin profile, with Wyatt having a three-year compound annual growth rate of 20%.
- Also, Waters is expected to generate over $70M in annual revenue synergies by the fifth year, following transaction close.
- The transaction is also expected to be accretive to the acquirer's EPS from Q1 2024.
- Shares were trading -2.16% pre-market.
- Source: Press Release
For further details see:
Waters to acquire Wyatt Technology for $1.36B