Hologic Strengthens Diagnostics Business With $795M Mobidiag Deal

Hologic Inc 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 (€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 (€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.