Honeywell buys Sparta Systems for $1.3 billion

Honeywell buys Sparta Systems for $1.3 billion

Honeywell broadens its science and software division through Sparta Systems

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

This information prepared by za.capex.com is not an offer or a solicitation for the purpose of purchase or sale of any financial products referred to herein or to enter into any legal relations, nor an advice or a recommendation with respect to such financial products.

This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation or the particular needs of any recipient.

You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.

This information may not be published, circulated, reproduced or distributed in whole or in part to any other person without the Company’s prior written consent. Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of za.capex.com

JME Financial Services (Pty) Ltd trading as ZA.CAPEX.COM acts as intermediary between the investor and Magnasale Trading Ltd, the counterparty to the contract for difference purchased by the Investor via ZA.CAPEX.COM, authorised & regulated by the Cyprus Securities and Exchange Commission with license number 264/15. Magnasale Trading Ltd is the principal to the CFD purchased by investors.