Fortune 100 company Honeywell (NYSE:HON) will pay $10 per share, or $600 million total, to purchase Intermec (NYSE:IN), a mobile computing device maker. Honeywell’s lower-than-expected profits have partially been attributed to the cost of the acquisition, and slow economic growth is expected next year.
The acquisition is set to benefit Intermec shareholders, as Honeywell says they will get a 25 percent premium from Friday’s closing stock price. Intermec profits for 2013 are expected to be just below $5 per share, which are currently up 23 percent at $9.80.
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While the numbers look good for Intermec, Honeywell sees a small dip as a result, with shares falling 0.4 percent to $61.72. Also, analysts predicted revenue of $39.42 billion for 2013, whereas Honeywell now predicts between $39 billion and $39.5 billion.
Honeywell stands to strengthen its core technologies with Intermec’s, and also branch off into new technologies, such as RFID (Radio Frequency Identification).
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