Fulgent Genetics To Acquire Inform Diagnostics, Lifts Q3 Revenue Outlook, Shares Up 5%

(RTTNews) - Shares of Fulgent Genetics, Inc. (FLGT) gained nearly 5% in extended trading session on Monday after the company announced the acquisition of Inform Diagnostics and lifted its revenue outlook.

Fulgent Genetics agreed to buy Inform Diagnostics, a national independent pathology laboratory based in Irving, Texas, and a portfolio company of Avista Capital Partners, for a total price of about $170 million to be paid from cash on hand.

The acquisition is expected to close during the second quarter of 2022, subject to the satisfaction of customary closing conditions, including regulatory approvals.

Looking forward to the first quarter of 2022, Fulgent now anticipates revenue to be about $300 million, up from prior guidance of $245 million, and core revenue excluding COVID-19 NGS testing to be at least $22 million, consistent with previous guidance.

Analysts polled by Thomson Reuters currently estimate revenues of $244.65 million for the quarter.

FLGT closed Monday's trading at $55.26, down $0.87 or 1.55%, on the Nasdaq. The stock, however, gained $2.49 or 4.51%, in the after-hours trading.