Hologic, a maker of diagnostic and medical imaging systems, has agreed to acquire medical devicemaker Cytyc Corp. and create a $10 billion company that focuses exclusively on advanced technology in womens health, the two companies announced.
The $6.2 billion cash and stock transaction was unanimously approved by the companies boards of directors and is expected to be completed in the third quarter of 2007, Bedford, Mass.-based Hologic and Cytyc, based in nearby Marlborough, Mass., said in a joint news release. The acquisition is subject to customary closing conditions and antitrust approvals.
The combination is expected to drive cross-selling across units of the new company, generating more than $75 million in extra revenues within the first three years. Efficiencies in marketing, purchasing, logistics and shared administrative services are expected to generate $25 million to $30 million in annual cost savings, according to the news release.
Under the terms of the deal, Cytyc shareholders will receive 0.52 shares of Hologic common stock and $16.50 in cash for each share of Cytyc common stock they own. That translates to $46.46 per share, or a premium of about 33% over Cytyc shares closing price Friday of $35.05.
The combined company will be called Hologic, and Cytyc will become its wholly owned subsidiary. It will be one of the largest companies in the world that focuses exclusively on technology in womens health, including screening, diagnostics and therapeutics for breast and cervical cancers, prenatal health, osteoporosis and permanent contraception, the companies said. -- by the Associated Press