July 22 (Reuters) - Agilent Technologies ( A ) said on

Monday it will acquire contract drug manufacturer Biovectra for

$925 million to expand its portfolio of services offered to

biotech companies and medical researchers.

Canada-based Biovectra offers fill-and-finish services for

drug manufacturers. It also operates a business that makes

active ingredients for complex drugs and has expertise in

fast-growing segments such as the GLP-1 weight loss drugs,

Agilent ( A ) said.

Agilent ( A ) has been struggling with soft demand for medical

tools and equipment used in clinical studies as its biotech

clients face a funding crunch.

The company said it will fund the transaction using a mix of

cash on hand and debt financing, adding that Biovectra will

become a part of its diagnostics and genomics unit.

The deal will have a dilutive impact of 5 cents on Agilent's ( A )

profit, a year after the close of the Biovectra transaction.

Biovectra, previously a unit of Mallinckrodt, was acquired

by private equity firm H.I.G. Capital in 2019 for $250 million.