Diagnostic imaging device and software developer Hologic has signed a definitive agreement to acquire Third Wave Technologies, a diagnostic reagent developer, for a purchase price of approximately $580 million.
The boards of directors of both companies unanimously approved the transaction in which the Bedford, Mass.-based Hologic is to acquire 100 percent of Third Wave's stock in a cash tender offer to be followed by a merger to acquire any untendered shares.
The transaction, completion of which is anticipated in the third calendar quarter of 2008, is expected to be modestly dilutive to Hologic's adjusted earnings per share in the first full year after closing and increasingly accretive thereafter, the company said.
Third Wave develops and markets molecular diagnostic reagents for a variety of DNA and RNA analysis applications based on its proprietary Invader chemistry.
"Third Wave's products in development, including its HPV [human papillomavirus] tests, employ a patented molecular diagnostic platform designed to help identify cervical cancer and other diseases at an early stage. This important transaction will broaden Hologic's range of diagnostic product offerings, enhance our revenue and earnings growth potential and, we believe, create long-term value for our shareholders,” said Jack Cumming, chairman and CEO of Hologic.