Luminex Enters Agreement to Acquire Nanosphere

(Northbrook, IL, USA) have entered into a definitive agreement under which Luminex will acquire Nanosphere, a leader in molecular microbiology and diagnostics, in an all-cash transaction valued at approximately USD 77 million (USD 1.70 per share).

With its focus on the molecular microbiology segment, Nanosphere delivers proprietary diagnostic tools that enable rapid and accurate detection of respiratory, gastroenteric, and bloodstream infections.

Benefits of the transaction include an ideal strategic fit: Nanosphere's Verigene platform, broad menu, and strong presence in the molecular microbiology market with over 240 customers to complement Luminex's customer base. The combination will add a growing revenue stream and new platforms for growth. It amplifies Luminex's market leadership as Nanosphere's Verigene technology leads in the high-growth bloodstream infection segment and complements Luminex's current infectious disease portfolio. Following the acquisition, only Luminex will be able to offer customers automated molecular platforms for both syndromic and targeted molecular diagnostic testing (Verigene and ARIES).

The merger is expected to immediately accelerate total revenue growth (accretive to Luminex’s adjusted earnings by end of 2017), reflecting Nanosphere's high double-digit revenue growth and the ability to leverage Luminex's global molecular diagnostic distribution.

"The acquisition of Nanosphere will significantly enhance Luminex's growth trajectory by expanding our product portfolio, delivering access to new markets, and strengthening our pipeline of future products to make us the partner of choice for all molecular labs," said Homi Shamir, president and CEO, Luminex, "The deal demonstrates prudent execution of our fourth strategic growth pillar – leveraging our financial strength to accelerate growth in our target markets."

"Luminex will recognize significant strategic benefit moving forward as our customer base and leverage in our expanding menu contribute to accelerated revenue growth," said Michael McGarrity, president and CEO, Nanosphere, "The resources and reputation for excellence that Luminex carries in the market will greatly benefit our customers and employees."

An archived audio webcast about the transaction can be accessed in the Investors section of Luminex's website for six months.

Luminex (with its indirect wholly-owned subsidiary Commodore Acquisition Inc) will fund the acquisition with cash on hand. It is expected that the transaction will close in the second quarter of Luminex's fiscal 2016.

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