Beckman Coulter, a Fullerton, Calif., developer of services related to complex biomedical tests, will acquire Biosite, San Diego, a company that commercializes biomedical processes for the advancement of diagnostic tests, in a deal valued at approximately $1.55 billion.
The deal, which does not require the approval of Beckman Coulter shareholders, is expected to close in the second quarter. Officials said the deal grew out of a successful four-year relationship in which the two companies worked on a test that aids in the diagnosis and assessment of heart failure, and will position Beckman Coulter as a leading provider of cardiac-disease diagnostic tests.
Beckman Coulter officials said they expect the transaction to immediately accelerate revenue growth and improve operating margins. Standard & Poors placed Beckman Coulters BBB rating on credit watch with negative implications. While the deal should boost cash flow available for debt repayment, the pace of credit measure improvement is unclear at this time, S&P said. -- by Cinda Becker