Omnicell (OMCL) to Acquire MACH4 Pharma Systems; Adjusts FY15 Outlook
- Wall St mixed as traders assess economic data, megacaps rebound
- U.S. job openings fall to 8.733 million in October - JOLTS report
- Hedge Funds were big sellers of Big Tech stocks last week - Morgan Stanley
- CVS Health adds 2% as 2024 revenue outlook tops estimates
- Take-Two dips as analysts flag possible disappointment over GTA VI release date
Omnicell (NASDAQ: OMCL) has signed an agreement to purchase MACH4 Pharma Systems, based in Bochum, Germany. The closing of the acquisition is subject to certain closing conditions set forth in the definitive purchase agreement. When and if the acquisition is finalized, the combination of Omnicell and MACH4 will create a comprehensive automated medication management offering for hospital and retail pharmacies throughout Europe and emerging markets internationally.
MACH4 Pharma Systems is a provider of highly automated medication management systems to a base of over 1,000 retail and hospital pharmacy customers primarily in Europe, with additional installations in China and the Middle East.
MACH4's modular robotic solutions for dispensing medications in original manufacturers' packages enable the company to serve the needs of a broad spectrum of pharmacy customers, from large hospital systems to local retailers. The flexible design of MACH4 systems provides both the chaotic method of storage and retrieval that optimizes for high capacity storage in the minimum amount of physical space, and the channel method of storage and retrieval that optimizes for speed of delivery. MACH4 systems are uniquely configurable to suit each specific customer's needs. MACH4 systems complement unique capabilities of Omnicell dispensing systems to handle medications in original manufacturers' packages. Omnicell expects to realize expanded market opportunities as each company's solutions are introduced to the other's customer base.
"Omnicell is committed to providing a complete set of pharmacy automation solutions that increases efficiencies and promotes patient safety in hospital, long term care and retail settings, and to taking our global presence to a new level," said Randall Lipps, chairman, president and CEO of Omnicell. "With MACH4, the expanded Omnicell portfolio will include innovative solutions that span robotic medication management systems, automated dispensing cabinets and medication adherence technology to meet the unique demands of our growing base of customers worldwide to provide services across the continuum of care."
The MACH4 Pharma Systems acquisition is a continuation of Omnicell's expansion into markets outside the United States, including the recent purchase of UK-based medication adherence packaging leader Surgichem Limited. Omnicell expects to accelerate its international growth by integrating MACH4's high-volume medication management technology with Omnicell automated dispensing systems in the markets Omnicell presently serves, while also expanding its opportunities through MACH4's direct presence in Germany and France.
"I expect that joining the Omnicell family will be welcome news to our customers who have come to trust MACH4's mission to make medication management as efficient as possible in any setting," said Holger Wallat, co-founder and CEO of MACH4. "Omnicell and MACH4 share that passion with very complementary solutions. For example, our box and blister pack management customers should benefit from Omnicell automatic dispensing cabinets that are uniquely capable of managing hospital workflows for drugs in the manufacturer's original packaging," he said.
Omnicell expects the acquisition to close in the first or second quarter of 2015, provided certain closing conditions are satisfied. Assuming an April 1, 2015 close, Omnicell expects 2015 revenue contribution from MACH4 will be between $12 and $15 million and Non-GAAP earnings per share dilution of approximately $0.04 as the companies are integrated. Omnicell expects the acquisition to become accretive during 2016. As a result, Omnicell financial guidance for 2015 is adjusted to include the expected results from MACH4 following the acquisition. Revenue for 2015 was previously expected to be between $480 and $490 million and is now expected to be between $492 and $505 million, an increase of 12% to 15% over 2014. Non-GAAP earnings per share were previously expected to be between $1.35 and $1.40 and are now expected to be between $1.31 and $1.36. Omnicell previously expected 2015 product bookings to be between $390 and $405 million and now expects product bookings between $398 and $416 million with the inclusion of MACH4.
*** The Street sees FY15 revs of $485.9 million and EPS of $1.36.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Johnson & Johnson (JNJ) provides long-term operational sales outlook
- Piper Sandler cuts these 2 lithium stocks to underweight
- AutoZone income tops estimates despite "tough" annual U.S. sales comparison
Create E-mail Alert Related CategoriesCorporate News, Guidance, Hot Corp. News, Hot Guidance, Management Comments, Mergers and Acquisitions
Related EntitiesEarnings, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!