Hologic acquires Endomag for $310 million in health technology expansion



MARLBOROUGH, Mass. – Hologic, Inc. (Nasdaq: ), a leading company in women's health, has confirmed the signing of a definitive agreement to acquire Endomagics Ltd (known as Endomag) for approximately $310 million. The transaction is subject to customary adjustments and is subject to regulatory approvals.

Headquartered in Cambridge, UK, Endomag specializes in developing breast cancer surgical technologies, including Magseed markers for preoperative tissue localization, Magtrace lymphatic tracking injections for cancer staging, and the Sentimag surgical guidance platform.

Erik Anderson, president of Hologic Breast and Bone Health Solutions, noted that the acquisition strengthens their breast surgery portfolio and provides surgeons and radiologists with more options. He emphasized Endomag's commitment to women's health and the potential to expand access to these technologies.

Endomag CEO Eric Mayes expressed enthusiasm for working with Hologic, highlighting the cultural fit and opportunity to expand its impact on women's health globally.

The financial impact to Hologic includes expectations for non-GAAP earnings per share to be dilutive in fiscal 2024, reaching a break-even point in 2025, and accretive gains thereafter. Endomag reports 2023 revenue of approximately $35 million.

Hologic's product portfolio includes the first commercial 3D mammography system and is a leader in cervical cancer detection, sexually transmitted infections and respiratory diseases. Their surgical techniques address uterine fibroids and abnormal uterine bleeding.

Endomag's Sentimag system is a non-radioactive surgical guidance platform that supports tissue localization and breast cancer staging, using a metal detector-like probe to identify Endomag's magnetic seeds and liquid tracers.

The acquisition is part of Hologic's ongoing strategy to enhance its product offerings and solidify its position in the women's health market. The information in this article is based on press release statements from Hologic, Inc.

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Investment Professional Insights

As Hologic, Inc. (NASDAQ: HOLX ) looks to expand its women's health portfolio with the acquisition of Endomag, it's worth noting that the company's management has been actively engaging in stock repurchases, reflecting an interest in the company's value Confidence. This strategy is consistent with Hologic's goal of increasing shareholder value, as evidenced by high shareholder yields, and InvestingPro Tip suggests that investors will be well rewarded through buybacks and potential dividends.

Hologic's financials appear to be strong, with a number of positive indicators. The company's market cap is steady at $17.99 billion, and despite a high P/E ratio of 36.26, its trailing twelve-month adjusted P/E ratio for the trailing first quarter of 2024 is lower at 23.64. That could be a sign that the market is expecting earnings to improve, a sentiment echoed by analysts predicting the company's net profit will grow this year.

Additionally, Hologic's gross profit margin for the trailing 12 months ended in Q1 2024 was as high as 60.99%, demonstrating the company's ability to maintain profitability. With liquid assets exceeding short-term debt and cash flow sufficient to cover interest payments, Hologic's debt levels are moderate, ensuring financial stability.

For investors looking for further insights, additional InvestingPro Tips are available, including forecasts of profitability and stock volatility.Use coupon code PRONEWS24readers can get an additional 10% off annual or biennial Pro and Pro+ subscriptions at InvestingPro, where they can get a total of 11 additional tips for a complete understanding of Hologic's financials and market position.

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