Monday, June 9, 2008

Hologic plans $580M buyout of Third Wave Technologies

By Mass High Tech Staff

Hologic Inc., a maker of medical products for women, plans to acquire molecular diagnostics firm Third Wave Technologies Inc. for $580 million in cash, according to the companies.

The buyout, expected to close in the third quarter of 2008, is intended to give Bedford-based Hologic (Nasdaq: HOLX) technology in molecular diagnostics and boost its growth in the market for cervical cancer screening, company officials said.

Third Wave (Nasdaq: TWTI), of Madison, Wisc., sells molecular diagnostic reagents used in DNA and RNA analyses to test for a variety of diseases. The firm has asked the U.S. Food and Drug Administration to approve a pair of molecular diagnostics for human papilloma virus (HPV), a known cause of cervical cancer. The U.S. market for HPV tests is $200 million annually, according to Hologic. 

Hologic reports it plans to borrow $600 million to fund the acquisition of Madison, Wis.-based Third Wave (Nasdaq: TWTI). The planned purchase price of $11.25 per share of Third Wave common stock is a 24-percent premium on the average trading price of the shares over the past three months, according to the buyer.

Hologic develops and markets diagnostics, imaging systems and surgical devices geared toward the women’s health market. With 3,580 workers, the company reported 2007 net income of $94.6 million on revenue of $738.4 million. Last year Hologic completed a $6.2 billion merger with Marlborough-based Cytyc Corp., a fellow medical technology firm focused on women’s health.