Hologic Inc. has entered into a definitive agreement to acquire BioLucent Inc. and its MammoPad breast cushion business. Biolucent will spin off its brachytherapy business into a newly created company, which will remain an independent company. The transaction total is expected to be $70 million, plus a two-year earn out, and should close some time in Q3 2007.
The earn out, if earned, will be payable in two annual cash installments not to exceed $15 million in the aggregate based upon BioLucent achieving certain revenue targets.
BioLucent is a privately held medical device company located in Aliso Viejo, Calif. The company has designed, manufactures and markets the MammoPad breast cushion, a radiolucent foam cushion that covers the cold, hard surfaces of all commercially available mammography equipment.
BioLucent's patented MammoPad is designed to reduce the discomfort that inhibits many women from getting regular mammography screenings. MammoPad is offered as standard of care in nearly 20 percent of mammography facilities nationwide and has been used by more than 10 million women. The company achieved revenues of approximately $17 million in calendar year 2006.
"Expanding our market share in women's health is a key element in the growth of our company," said Jack Cumming, chairman and chief executive officer, Hologic. "The acquisition of this technology is consistent with the company's strategy of looking to the future and building upon our established technology roadmap. We believe this acquisition provides us additional technical capabilities and customer relationships to further solidify our position of strength in the growing mammography market."