Hologic to buy Gen-Probe for $3.7 billion
April 30, 2012
by Brendon Nafziger, DOTmed News Associate Editor
Hologic Inc. said Monday it would buy Gen-Probe Inc., a company that makes tests for STDs and West Nile Virus, for $3.7 billion in cash.
The deal, which sees Hologic paying $82.75 a share, a 20 percent premium on Gen-Probe's Friday closing price, is expected to wrap up in the second half of the year, Hologic said.
Separately, the company also announced its quarterly earnings on Monday, posting losses of $40.3 million or 15 cents per share.
Bedford, Mass.-based Hologic said the deal would add 20 cents to its adjusted earnings per share during the first fiscal year after the transaction concludes, and that it expects to realize $40 million in "cost synergies" within the first year, and $75 million altogether within the first three years.
Hologic said after the purchase, the combined company would have $2.4 billion in revenues and adjusted EBIDTA of $822 million.
Gen-Probe, based in San Diego, makes the Aptima line of tests for chlamydia, human papillomavirus and trichomoniasis.
In its financial statement, for its second fiscal quarter ending March 24, Hologic reported revenues of $471.2 million, up 7.4 percent from the same period last year. Its breast health division, which includes its mammography units and biopsy devices, posted $218.7 million in revenues, up 6.2 percent from the second quarter last fiscal year. Hologic also said it saw a 7.1 percent increase, to $4.9 million, in service revenues from its global installed base on digital mammography systems.
Gen-Probe, which has been up for sale for about a year, was widely expected to be purchased by Novartis, until it withdrew from bidding in July, according to reports.
In morning trading on Nasdaq, Gen-Probe's stock rocketed almost 19 percent to $81.62 a share, while Hologic's fell about 10 percent to reach $19.06 a share.
The deal, which sees Hologic paying $82.75 a share, a 20 percent premium on Gen-Probe's Friday closing price, is expected to wrap up in the second half of the year, Hologic said.
Separately, the company also announced its quarterly earnings on Monday, posting losses of $40.3 million or 15 cents per share.
Bedford, Mass.-based Hologic said the deal would add 20 cents to its adjusted earnings per share during the first fiscal year after the transaction concludes, and that it expects to realize $40 million in "cost synergies" within the first year, and $75 million altogether within the first three years.
Hologic said after the purchase, the combined company would have $2.4 billion in revenues and adjusted EBIDTA of $822 million.
Gen-Probe, based in San Diego, makes the Aptima line of tests for chlamydia, human papillomavirus and trichomoniasis.
In its financial statement, for its second fiscal quarter ending March 24, Hologic reported revenues of $471.2 million, up 7.4 percent from the same period last year. Its breast health division, which includes its mammography units and biopsy devices, posted $218.7 million in revenues, up 6.2 percent from the second quarter last fiscal year. Hologic also said it saw a 7.1 percent increase, to $4.9 million, in service revenues from its global installed base on digital mammography systems.
Gen-Probe, which has been up for sale for about a year, was widely expected to be purchased by Novartis, until it withdrew from bidding in July, according to reports.
In morning trading on Nasdaq, Gen-Probe's stock rocketed almost 19 percent to $81.62 a share, while Hologic's fell about 10 percent to reach $19.06 a share.