Benzinga | Apr 8, 2021 10:36AM EDT

Hologic Strengthens Diagnostics Business With $795M Mobidiag Deal

* Hologic Inc (NASDAQ: HOLX) has agreed to acquire Mobidiag Oy, a privately held, Europe-based provider of molecular diagnostic tests and instrumentation, for an enterprise value of approximately $795 million.

* The deal includes a cash payment of approximately $714 million ((euro)600 million) for Mobidiag's equity and net debt of roughly $81 million.

* Mobidiag develops and markets PCR (polymerase chain reaction)-based tests for acute care conditions such as gastrointestinal and respiratory infections, antimicrobial resistance management, and healthcare-associated infections.

* The Amplidiag and Novodiag platforms are automated instruments that deliver rapid turnaround times ranging from 50 minutes to two hours.

* Mobidiag generated approximately $42 million ((euro)35 million) of revenue in calendar 2020. Hologic intends to invest in assay development to drive the growth of the Novodiag platform.

* The acquisition is roughly $0.10 dilutive to Hologic's non-GAAP EPS in fiscal 2022, slightly dilutive in 2023, and accretive after that.

* Hologic expects to finance the transaction with cash on hand and borrowing on its existing line of credit.

* The acquisition is expected to close in the fourth quarter of this year.

* The Company ended the December quarter with cash and equivalents of $868.7 million.

* Price Action: HOLX shares are down 0.10% at $72.8 on the last check Thursday.