IDEXX Laboratories announced on September 16 that it has acquired CoVetAI, a fast-growing veterinary software company whose tool listens during appointments and organizes what gets said and done, in a deal whose price was not disclosed. The acquisition plugs into IDEXX's cloud practice software, already used by more than 10,000 clinics worldwide, and links to IDEXX VetConnect PLUS, giving the new product a ready audience while CoVet's compatibility with rival practice systems extends its reach to clinics and regions IDEXX does not serve today. The deal feeds a diagnostics engine that is already growing: on August 4, IDEXX reported second-quarter revenue growth of 10%, with its recurring diagnostics business up 11% on higher volumes, and placed more than 1,600 inVue Dx analyzers in the quarter, lifting the installed base past 9,000. IDEXX describes the payoff in future tense, saying the capabilities can raise diagnostic use over time, and without deal terms there is no way to judge what it paid or how much CoVet matters to earnings. Second-quarter earnings per share rose 18%, but that included tax benefits from stock-based pay and a currency boost, with comparable growth at 15%, and the company says it is spending more on commercial and innovation priorities, so its higher full-year earnings outlook comes with added costs. Hedge fund ownership rose to 63 funds from 62 in the prior quarter, short interest sits at 3.04% of float, and the forward P/E of 30.86 as of September 18 leaves little cushion if results slip.
IDEXX Laboratories Inc