Luminex Sweetens Bid To Buy Nanosphere

Luminex Corporation LMNX and Nanosphere, Inc. NSPH have announced an update on Acquisition Agreement. According to the companies, they have struck a definitive agreement under which the former will buy the latter. The Transaction is expected to be accretive to its adjusted earnings by the end of the next year.

Luminex said it has boosted the offer price to $1.70 a share from $1.35 a share in an all cash transaction. The total transaction is now valued about $77 million compared to $58 million at $1.35 a share.

The current offer was in response to Luminex's unsolicited third party offer for Nanosphere at $1.50 per share.

According to an earlier press release of the company, Luminex stands to gain at least on three factors. One was that the acquisition was an ideal tactical fit. Nanosphere's Verigene platform, broad menu, and strong presence in the molecular microbiology market with over 240 customers complement Luminex's customer base. The combination will add a growing revenue stream and new platforms for growth.

The second factor was that it Amplifies Luminex's Market Leadership. Nanosphere's Verigene technology leads in the high-growth bloodstream infection segment and complements Luminex's current infectious disease portfolio. After the acquisition, only Luminex would be able to offer customers automated molecular platforms for both syndromic and targeted molecular diagnostic testing (Verigene and ARIES).

The third factor is that the acquisition offered attractive economics and shareholder value. Nanosphere's forecasted 2016 revenue was between $28-$30 million and that it would immediately accelerate Luminex's stand-alone projected revenue growth, reflecting Nanosphere's high double digit revenue growth and the ability to leverage Luminex's global molecular diagnostic distribution. For the year 2015, Nanosphere's total revenue was $21 million.

Following the news, Nanosphere traded 25.95 percent higher in the pre-market.