Dive Brief:
- Hologic plans to acquire Endomagnetics, which makes technology for breast cancer surgery, for about $310 million.
- Cambridge, U.K.-based Endomagnetics develops and sells technologies to mark tissue ahead of a surgery and for lymphatic tracing, which is used to identify areas where cancer may have spread outside of a tumor.
- Erik Anderson, Hologic’s president of breast and skeletal health solutions, said in a Monday statement that the acquisition would complement the company’s existing breast surgery portfolio. Marlborough, Massachusetts-based Hologic makes mammography systems, breast biopsy systems and markers.
Dive Insight:
Endomagnetics was founded in 2007 and offers three main products. Magseed is a magnetic marker used as an alternative to wire localization to mark tumors for surgeons. Magtrace is an injectable solution used to guide lymph node biopsies. The Sentimag platform includes magnetic sensing probes and supports both localization and lymphatic tracing.
Endomagnetics will add to Hologic’s breast health business, which reported first-quarter revenue of $377.7 million. Hologic has been grappling with supply constraints and has a backlog of orders, but the breast health unit still grew year over year by 13% in the quarter.
Hologic CEO Stephen MacMillan told investors in February that placements of mammography gantries are still a “foundational component” for growth of the business, even as Hologic has diversified with more software tools.
When asked about M&A plans, he said the company was looking at areas that would allow it to build on its breast surgery business.
Privately held Endomagnetics brought in about $35 million in revenue last year, according to Hologic. The acquisition is expected to be slightly dilutive to Hologic’s adjusted earnings per share in fiscal 2024, break even in 2025 and slightly accretive in the following years.
The acquisition is subject to customary closing conditions, including regulatory approvals.