With an eye in increasing its presence in women's healthcare, women's imaging vendor Hologic has signed an agreement to acquire interventional technology developer Suros Surgical Systems. The Bedford, MA-based vendor will pay $240 million, subject to adjustment, plus a two-year earn-out.
At closing, Hologic will pay $132 million in cash for the Indianapolis-based firm, and an additional $108 million in cash, shares of Hologic common stock, or a combination of both. Upon closure of the deal, Suros will become a wholly owned subsidiary of Hologic.
The earn-out will be payable in two annual cash installments equal to the incremental revenue growth in Suros' business in the two years following the closing. The deal is subject to customary closing conditions, including Suros stockholder approval and the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.
Privately held Suros generated 2004 revenue of approximately $27.2 million, which represented 71% growth compared with 2004, Hologic said. The vendor expects sales related to this acquisition will be greater than $40 million in 2006, with the deal accretive to earnings in fiscal 2007.
By AuntMinnie.com staff writers
April 18, 2006
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