Hologic Inc., a maker of diagnostic and medical imaging systems, will acquire medical device maker Cytyc Corp. and create a $10 billion (7.42 billion EUR) company that focuses exclusively on advanced technology in women's health.
The $6.2 billion (4.6 billion EUR) 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-based Hologic and Cytyc, based in nearby Marlborough, said in a joint statement.
The combination is expected to drive cross-selling across units of the new company, generating more than $75 million (55.65 million EUR) in extra revenues within the first three years. Efficiencies in marketing, purchasing, logistics and shared administrative services are expected to generate $25 million (18.55 million EUR) to $30 million (22.26 million EUR) in annual cost savings, according to the statement.
Under the terms of the deal, Cytyc shareholders will receive 0.52 share of Hologic common stock and $16.50 (12.24 EUR) in cash for each share of Cytyc common stock they own. That translates to $46.46 per share, or a premium of about 33 percent 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 women's health, including screening, diagnostics and therapeutics for breast and cervical cancers, prenatal health, osteoporosis and permanent contraception, the companies said.
"By combining our companies' complementary, best-in-class products and technologies, we expect to drive enhanced growth and value creation," Hologic Chairman and Chief Executive Officer Jack Cumming said.
"This is a great transaction that provides Cytyc shareholders with enhanced value both today and over the long-term," said Cytyc's chairman, president and CEO, Patrick Sullivan.
The deal is subject to approval by regulators and both companies' shareholders.
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