Hologic, Cytyc to merge in $6.2 billion deal
Hologic Inc. announced plans to buy Cytyc Corporation in a move to combine the two companies in a joint focus in advanced technology for women’s health. The transaction is expected to close in Q3 of this year and will total $6.2 billion.
The combined company would represent over $1 billion in annual sales, with a large product portfolio devoted to woman's screening and treatment including integrated solutions in screening, diagnostics and therapeutics for women's health, including, breast cancer, cervical cancer, menorrhagia, pre-natal health, osteoporosis, endometriosis and permanent contraception. The combined company will have direct operations in over 20 countries with more than 3,300 employees, including 1,200 sales and service professionals.
The transaction has been unanimously approved by the boards of directors of both companies.
“The upside potential we see as a result of our combination is compelling. We believe this transaction enables both Cytyc and Hologic to reach our shared goal of improving women's health through earlier and better detection, improved diagnosis, less invasive treatment, and improved outcomes more quickly,” said Patrick Sullivan, Cytyc's chairman, president, and chief executive officer. “We are very excited about the benefits this combination of industry leaders will provide to shareholders, employees, physicians and their patients."
The companies also said that the merger will boost cross-selling opportunities with integrated product offering and broader channel coverage, which should increase penetration of key customer segments such as OB/GYNs and breast cancer treatment specialists. These initiatives are expected to enhance revenue growth by more than $75 million within the first three years after the merger closes.
The companies also expect to increase growth in international revenues by capitalizing on the increased scope and scale created by this transaction, which will include an international direct sales and service team of over 200 associates and 150 distribution partners supporting over 125 countries.
For Hologic's fiscal year 2008, combined revenues are expected to be in excess of $1.7 billion. Following the close of the transaction, Patrick Sullivan will become chairman and Hologic’s current Chairman and Chief Executive Officer Jack Cumming will become CEO of the combined company.