Hologic to Buy Gen-Probe for $3.7BTuesday, May 1, 2012
San Diego-based Gen-Probe Inc., which develops and manufactures molecular diagnostic products and services used primarily to diagnose diseases, screen blood and ensure transplant compatibility, is being acquired by Hologic Inc. in a $3.7 billion deal.
The companies announced April 30 that their boards of directors unanimously approved a cash purchase price of $82.75 per share. The transaction is expected to be funded through available cash and additional financing of term loans and high-yield securities.
After the deal closes sometime in the second half of 2012, Gen-Probe is set to become a wholly owned subsidiary of Hologic. Hologic will retain its headquarters in Bedford, Mass. and the combined company will maintain a significant presence in San Diego. Gen-Probe currently employs 1,400 including a local staff of about 900.
“This transaction provides compelling cash value for our shareholders and represents an outstanding opportunity for our business,” Gen-Probe chairman and CEO Carl Hull said in a statement. “Together, Gen-Probe and Hologic will be very well-positioned to pursue a complete range of diagnostic opportunities in women’s health, with a stronger focus on the dynamic molecular diagnostics market. Specifically, we are excited about the opportunity to increase demand for our Aptima women’s health products based on Hologic’s global commercial presence.”
Gen-Probe’s Aptima line of sexually transmitted disease tests includes Chlamydia/gonorrhea, human papillomavirus and Trichomonas products. In addition, Gen-Probe’s Procleix line of HIV, HCV, HBV and West Nile virus blood screening products and strong partnership with Novartis AG provide an attractive market, with a global reach and significant growth opportunities for the combined company.
The combined company, which will have a presence in more than 150 countries, will have pro forma, last-12-month revenues of approximately $2.4 billion; have adjusted earnings before interest, taxes, depreciation and amortization of $822 million; and offer a wide spectrum of health products globally, the companies said in a statement.