The novel acquisition is deemed to expand and diversify Hologic’s diagnostic business across various geographies
United States-based women’s healthcare provider, Hologic Inc. has reportedly announced the acquisition of European manufacturer and developer of molecular diagnostic assays- Diagenode in a transaction worth USD 159 million. The deal is expected to reach conclusive terms subject to the working capital and other customary closing adjustments.
It has been speculated that the acquisition is anticipated to break-even to Hologic’s non-GAAP earnings per stake through FY2022, and accretive thereafter.
Hologic’s Group President, Jan Verstreken mentioned that the acquisition of Diagenode would further bolster their company’s molecular diagnostics business by expanding its international capabilities, enabling it to offer a broader and more differentiated test menu, and enhancing its regional time-market.
Commenting on the novel move, Hologic’s President, Chairman, and CEO, Steve MacMillan, cited that the company is delighted to put its strong cash flow to work to take over Diagenode and further strengthen the firm’s diagnostics business, which boasts of huge momentum in the United States and globally.
He added that the transaction aligns Hologic’s tuck-in M&A strategy, offers attractive growth potential, and is anticipated to leverage its automation capabilities.
On the other hand, Didier Allaer, Founder and CEO of Diagenode, has quoted that the team is pleased to become the part of Hologic’s diagnostic business in the upcoming years. He added that Diagenode’s businesses are highly complementary and the firm is thrilled that Hologic’s leadership in molecular automation and commercial resources will enable the former company to offer an assay more diversely. Moreover, being an innate part of Hologic would help them scale up their products to utmost potential.
It would be essential to mention that Diagenode had previously collaborated with Hologic to develop Panther Fusion assays from group B Bordetella and Streptococcus. Besides, the company is also playing a key role in epigenetics with a robust portfolio of devices, reagents, kits, and services to support the analysis of RNA and DNA.