Benzinga | Mar 1, 2021 07:09AM EST

Hologic Acquires Molecular Diagnostic Company Diagenode For ~$159M

-- Transaction Expands and Diversifies Hologic's Diagnostic Business Across Test Menu, Customer Segments and Geography --

Hologic, Inc. (NASDAQ:HOLX), a global leader in women's health, announced today that it has acquired Diagenode, a privately held, European developer and manufacturer of molecular diagnostic assays and epigenetics products, for approximately $159 million (130 million euros), subject to working capital and other customary closing adjustments.

"Acquiring Diagenode further strengthens our molecular diagnostics business by expanding our international capabilities, improving our regional time-to-market, and allowing us to offer a broader, more differentiated test menu," said Jan Verstreken, Hologic's group president, international. "Diagenode has been a great partner since 2016, helping us develop and manufacture PCR-based assays for Panther Fusion(r). Now we look forward to accelerating and broadening those efforts to benefit our customers and patients."

Diagenode offers more than 30 real-time PCR (polymerase chain reaction) tests that are CE-marked for the detection of bacteria, parasites and viruses involved in sexually transmitted infections, respiratory diseases, meningitis and gastroenteritis. Diagenode previously collaborated with Hologic to develop Panther Fusion assays for group B Streptococcus and Bordetella. Diagenode is also playing a leading role in epigenetics with a robust portfolio of devices, kits, reagents, antibodies and services to aid in the analysis of DNA and RNA.

"We are very pleased that the Diagenode team will become part of Hologic's diagnostic business," said Didier Allaer, Diagenode's founder and chief executive officer. "Our businesses are highly complementary, and we are excited that Hologic's commercial resources and leadership in molecular automation will enable us to offer our assay menu more broadly. Being part of Hologic will help scale our products to their full potential."

"We are excited to put our strong cash flow to work to acquire Diagenode and further strengthen our diagnostics business, which has had tremendous momentum in the United States and internationally," said Steve MacMillan, Hologic's chairman, president and chief executive officer. "The acquisition is consistent with our tuck-in M&A strategy, leverages our automation capabilities, and provides attractive growth potential. And combined with our recent purchase of Biotheranostics, it enables us to continue strengthening our base diagnostics business to accelerate growth post-COVID."

Diagenode generated more than $30 million of revenue in the last 12 months. The acquisition is expected to be approximately break-even to Hologic's non-GAAP earnings per share through fiscal 2022, and accretive thereafter.