Benzinga | Jan 4, 2021 08:11AM EST

Hologic To Acquire SOMATEX For $64M

Deal further expands Hologic's portfolio of world-class breast health solutions addressing the full continuum of care

Hologic, Inc. (NASDAQ:HOLX), an innovative medical technology company primarily focused on improving women's health, announced today it has completed the acquisition of SOMATEX Medical Technologies GmbH, a leader in biopsy site markers and localization technologies, for approximately $64 million. The company was previously owned by E-Med Solutions GmbH, Berlin, a group of investors led by German private equity company Westlake Partners.

The transaction supports Hologic's strategy to provide a comprehensive suite of innovative solutions across the continuum of breast health care. Specifically, SOMATEX's differentiated products will enable Hologic to strengthen and further expand its breast marker portfolio, which has been growing consistently. As a result of the acquisition, Hologic will also enhance its sales presence in Europe by expanding its direct channel in Germany and its network of regional and international distributor partners.

"The acquisition of SOMATEX allows us to expand our biopsy portfolio by providing a suite of market-leading solutions that not only address our customers' needs, but also improve the biopsy experience for their patients," said Jennifer Meade, Hologic's Division President, Breast and Skeletal Health Solutions. "We've had a strong partnership with SOMATEX for several years, which along with our shared focus on innovation, will allow us to quickly integrate and begin building a pipeline that will drive profitable growth and recurring revenue for our breast health business globally."

SOMATEX specializes in the development and manufacturing of minimally invasive devices in the areas of tumor diagnostics, biopsy and interventional specialties, providing Hologic with additional expertise and capabilities to continue to grow its breast health portfolio. The SOMATEX product portfolio includes the Tumark(r) family of tissue markers, which were distributed by Hologic in the U.S. prior to the acquisition.

"For years, SOMATEX has been committed to driving innovative, best-in-class tumor marker and localization solutions for our customers and their patients and to becoming a leader in our space," said Joerg Heise, Managing Director of SOMATEX. " We are excited to continue this journey through Hologic and their global footprint, providing so many more with access to these pioneering technologies that aid in the early detection and treatment of breast cancer."

SOMATEX is expected to generate approximately $13 million of revenue in calendar 2020, including sales of Tumark markers to Hologic. The acquisition is expected to be slightly accretive to Hologic's non-GAAP earnings per share starting in the Company's current fiscal year.