Acuity Signs Deal to Acquire Parameter Technologies
AYI sits 25% above its 52-week low of $257.04.
Summary
Acuity announced an agreement to acquire Parameter Technologies for $675 million in an all-cash deal that adds a bolt-on business to a company with a roughly $9.5 billion market value. Revenue contribution and financing terms were not disclosed, so the financial impact beyond the purchase price cannot yet be sized. The move comes days after Acuity filed a new automatic shelf registration on October 23, which gives it capacity to fund deals or issue stock, though the company has not said how it will pay. Acuity just posted strong fiscal Q4 results with diluted EPS up 56% to $5.63 on $1.2 billion in sales, so this looks like a growth add-on rather than a rescue.
At the time of this announcement, AYI was trading at $321.00 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $9.5B. The 52-week trading range was $257.04 to $380.17. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.