Dilutive Acquisition

Dilutive Acquisition

An acquisition that reduces a publicly-traded company's earnings per share. A dilutive acquisition occurs when the price-earnings ratio of the acquiring firm is less than that of the target firm. A dilutive acquisition usually results in a lower share price for the target company. See also: Accretive acquisition.
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First, on September 1, 2015, HeartWare announced a highly dilutive acquisition of Valtech Cardio, Ltd.
By doing a dilutive acquisition we don't make our lives easier in the short term, but we are committed to our stated goals and we will manage through," chief executive officer Pascal Soriot told reporters.
People realise mergers and acquisition (M&A) is a big part of the Oracle growth story - on the other hand, no one wants to see a big, dilutive acquisition," said Bill Whyman, an analyst who covers the technology industry at ISI Group.
The other tenet of Neon's acquisition philosophy is never to make a dilutive acquisition.
If there's anything that separates Toller from his predecessor, however, it's his razor-sharp focus and hard eye for numbers: Focusing on core businesses in plastics additives, resins, surfactants, petroleum specialties, and silicones, Toller is a strident cash-flow advocate, who says he'd be hard-pressed to suffer a dilutive acquisition.
Wachovia noted several other possible risks to Amgen's growth potential in the next three to five years, including domestic pricing pressure from Johnson and Johnson, European patent expirations, dilutive acquisitions and Medicare reimbursement changes for injectable drugs.
Dilutive acquisitions are a big no-no to Wall Street.
Are Citrix and Dell warranted in making dilutive acquisitions of virtualization firms?
We are confident that the brokerage community and investors who appreciate intelligently structured micro-cap companies will provide Level Best Golf with sufficient support to achieve its objectives and that we will continue to grow aggressively by increasing the market for our line of golf products, led by the Angle Iron, as well as pursuing related, non dilutive acquisitions, joint ventures and selecting to represent the best of the new products being brought to our attention on a regular basis.