Hologic Splashes Out $3.72 Billion for Gen-Probe
It was revealed on Monday that Hologic (NASDAQ: HOLX) is set to purchase Gen-Probe (NASDAQ: GPRO) for approximately $3.72 billion. This is an all-cash deal that will see the Bedford, Mass.-based company pay $82.75 for each GPRO share. The move will see HOLX seek to broaden its diagnostics business.
"This transaction establishes Hologic as a premier company in [sexually transmitted disease] diagnostics and advances our core focus on women's health," said Rob Cascella, Hologic's CEO, adding that it will help the company "capitalize on the fast-growing molecular diagnostics market with an established global infrastructure."
Following the acquisition, HOLX's per-share earnings are expected to be boosted by 20 cents in the first fiscal year, and more afterwards.
So what will Gen-Probe bring to Hologic? Well, its diagnostic products include tests for STDs (including chlamydia and gonorrhea), human papillomavirus and trichomonas.
The newly-combined company is expected bring in annual revenue of roughly $2.4 billion, with adjusted earnings before interest, taxes, depreciation and amortization of $822 million.
With Hologic looking to broaden its diagnostic base, it really seems like an inspired move to purchase GPRO, which also markets a range of nucleic acid tests (NATs), to detect infectious micro-organisms, including those causing tuberculosis, strep throat, and other infections.
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