Hologic Inc, Bedford, Mass, announced that it has successfully completed the acquisition of Gen-Probe Inc for a total net purchase price of approximately $3.8 billion. Gen-Probe is now a wholly-owned subsidiary of Hologic.
The transaction is expected to be $0.20 accretive to Hologic’s non-GAAP adjusted earnings per share in fiscal 2013 and significantly more accretive on a non-GAAP basis thereafter. Hologic also expects the transaction to accelerate growth rates. The combined company expects to realize approximately $75 million in cost synergies within three years following the close of the transaction. In addition, the combined company expects to have strong free cash flows, which will be used primarily to reduce debt with the expectation to return to pre-transaction leverage levels within three years.
The closing follows the receipt of all necessary regulatory approvals, and approval of the transaction by Gen-Probe shareholders on July 31, 2012. Pursuant to the terms of the definitive merger agreement, Gen-Probe shareholders will receive $82.75 in cash for each share of Gen-Probe common stock.
