Brady Corp Snaps Up Magicard For $59M


Identification solutions and workplace safety products provider Brady Corp. (BRC) has acquired Magicard Limited for approximately $59 million.

Magicard is a leader in ID card-printing technology and provides a range of desktop devices to address local, on-demand as well as secure ID card issuance needs. For fiscal 2021, Magicard is expected to generate revenue of about $32 million.

This acquisition helps Brady gain rigid card printing and encoding expertise to add to its offerings of printers.

Brady Corp President and CEO J. Michael Nauman said, “Magicard is a highly regarded U.K.-based company that is well known globally for its innovation and differentiated products. The acquisition of Magicard allows Brady to expand our product offering into rigid-card printing and encoding.”

Nauman added, “Magicard has a complementary product offering that allows Brady to offer new printing capabilities to a diverse set of customers and industries. We intend to expand Magicard’s addressable market through Brady’s global footprint throughout Europe, Asia, and the Americas.” (See Brady Corp stock analysis on TipRanks)

Additionally, Brady has also declared its Q3 results. Driven by higher identification solutions sales, revenue jumped 11.1% year-over-year to $295.50 million, beating consensus by $18 million. Its EPS for the quarter was at $0.71, ahead of estimates by $0.04.

On May 21, Wells Fargo analyst Michael McGinn reiterated a Sell rating on the stock but increased the price target to $50 (11% potential downside) from $45.

During Brady’s Q3 earnings call, McGinn enquired about Brady’s capital allocation strategy and divestitures.

In response, Nauman commented that Brady has considered divesting parts of its businesses in the past and is always looking at that strategy, as it helps to maintain focus on businesses that will be strongest for the company’s future.

Brady scores a 5 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock may perform in line with market expectations.

Shares have gained about 20.4% over the past six months.

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