Xconomy: Hologic Buys Gen-Probe for $3.7B, Making Molecular Diagnostics Push
Summary
The Bedford, MA-based maker of women’s health products (NASDAQ: HOLX) said today it has agreed to purchase San Diego-based Gen-Probe (NASDAQ: GPRO), a molecular diagnostics company, for $3.7 billion, or $82.75 a share.Hologic said the deal is expected to be completed in the second half of 2012, and that it will boost earnings per share by 20 cents in the first fiscal year.The Hologic headquarters will remain in Bedford, MA, and it said it will keep “a significant presence” in San Diego.By acquiring Gen-Probe, Hologic gets the market leader in chlamydia/gonorrhea testing and in HIV/Hepatitis C Virus/Hepatitis B Virus blood screening, said analyst Quintin Lai of Robert W. Baird, in a note to clients.“Given Hologic’s history of value-destructive M&A (e.g. Cytyc, Third Wave Technologies), and that both companies are in the midst of major product launches where street expectations have come up, this deal raises significant questions about the ability of each company to independently accelerate organic growth,” said Tycho Peterson, an analyst with JP Morgan, in a note to clients this morning.
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