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Vienna, Austria-based Cato produces software that automates the creation and sharing of data aimed at reducing human error, standardizing practices, and streamlining workflow in the process of delivering drugs in both pharmacy and clinical settings. In essence, the software tells drug dispensers how and how much of a drug to distribute, with the aim of reducing medical errors. As such, the business would tend to enhance BD's prefillable drug delivery systems and related businesses. In a statement, BD Medical-Medical Surgical Systems President William A. Tozzi predicted the Cato acquisition would "help us accelerate BD's growth, especially in the pharmacy segment."
Specific financial terms of the acquisition were not disclosed, although BD did allow that the transaction will probably be "minimally dilutive" in fiscal 2013. In any case, the company confirmed that the Cato purchase will not affect the firm's earnings guidance for this year.
In BD's Feb. Q1 2013 earnings release, the company guided investors to expect 3.5% to 4% revenue growth this year, with diluted earnings per share from continuing operations probably coming in between $5.69 and $5.72, resulting in 6% to 6.5% earnings growth year over year.