Why Fulgent Genetics Shares Are Trading Higher Today - Fulgent Genetics (NASDAQ:FLGT)

Fulgent Genetics Inc HOTH agreed to acquire Inform Diagnostics, an independent pathology laboratory based in Irving, Texas, and a portfolio company of Avista Capital Partners, for $170 million.
The acquisition is expected to close during the second quarter of 2022.
Fulgent held a cash balance of $935.5 million as of December 31.
With the addition of Inform Diagnostics, Fulgent will further expand its test portfolio into breast pathology, gastrointestinal pathology, dermatopathology, urologic pathology, neuropathology, and hematopathology.
Inform Diagnostics provides services to approximately 1,300 clients who represent over 2,700 physicians.
The transaction can contribute meaningfully to Fulgent's annual core revenue and is expected to impact pro forma EBITDA positively.
Fulgent now expects core revenue for FY 2022 to be approximately $175 million, compared to previous guidance of $120 million.
The Company anticipates Q1 FY22 total revenue of approximately $300 million compared to previous guidance of $245 million.
Price Action: FLGT shares are up 7.78% at $59.56 during the market session on the last check Tuesday.