Hologic to Buy Gen-Probe for USD 3.72 Billion

The purchase will allow Hologic to expand its growing diagnostics products and services business. The transaction is expected to close in the second half of the year (2013) and should result in USD 75 million in cost savings in its first three years, the companies said.

Hologic has been steadily building its diagnostics business, domestically and abroad. Last year, it acquired TCT International, a Chinese distributor of medical products, for USD 135 million in cash. The diagnostics business is one of the company’s fastest growing segments, according to Hologic’s second-quarter earnings report. For the six months ended March 24, the unit’s sales rose 10.3% from the period a year earlier. Hologic attributed the gain to growth in ThinPrep, its Pap test product. Hologic, Inc. is a leading developer, manufacturer, and supplier of premium diagnostic products, medical imaging systems, and surgical products. The company operates four core business units focused on diagnostics, breast health, GYN surgical and skeletal health.

Gen-Probe is a maker of molecular diagnostics products that are used to screen for blood diseases and test transplant compatibility, among other things. The combined businesses expect to generate annual revenue of about USD 2.4 billion.

“Gen-Probe is an ideal partner and strategic fit to Hologic’s existing diagnostics business and complements our focus on scaling and diversifying our diagnostics franchise,” Robert A. Cascella, the chief executive of Hologic, said in a statement. “Our combined company will be well positioned globally to capitalize on the fast-growing molecular diagnostics market with an established global infrastructure.”

Related Links:
Hologic
Gen-Probe