The middle of the week comes with news about Honeywell – the multinational conglomerate which deals with aerospace, building technologies, performance materials, and safety and productivity solutions.
Honeywell announced that it would buy Sparta System for $1.3 billion in an all-cash transaction, marking the former’s largest acquisition in four years. Sparta Systems, headquartered in New Jersey and specializing in sciences software, serves more than 400 customers, including 42 of the world’s top 50 pharma companies and 33 out of the top 50 medical device companies.
From Honeywell’s perspective, this deal will strengthen its leadership in industrial automation, enterprise performance management software, and digital transformation solutions. Sparta System’s expertise will be used by one of Honeywell’s divisions, Honeywell Forge, to provide improved new therapies, better business and patient outcomes, effective regulatory compliance, and faster time to market. The acquisition will not affect Honeywell’s 2020 outlook for sales, which is seen at a high of $32.2 billion, on an adjusted EPS of $7.05.
The market was not overly excited about the news, Honeywell stock price losing more than 1.20%. Still, in the past six months, its stock price gained 45%.
Sources: prnewswire.com, thestreet.com