Hologic, a developer, manufacturer and supplier of premium diagnostics, medical imaging systems and surgical products to serve the healthcare needs of women, has entered into a definitive agreement to acquire Sentinelle Medical, a provider of Magnetic Resonance Imaging (MRI) breast coils, tables and visualisation software.
The acquisition broadens Hologic’s presence in women’s health by offering additional products through existing sales channels. The combination is expected to expedite new advances in breast imaging. In addition it also leverages improved coil technology for leading MR systems across other anatomy-specific applications.
Hologic said the purchase price for the transaction is expected to be $85m, plus a two-year contingent earn out. The earn out will be payable in cash installments equal to a multiple of the incremental revenue growth in Sentinelle Medical’s business in the two years following the closing.
Cameron Piron, president and CEO of Sentinelle Medical, said: “We are proud of the innovations we have introduced with our MRI solutions and are very pleased with our accomplishments to date. This merger is a natural fit. Our expertise in MR breast imaging combined with Hologic’s resources should further accelerate the adoption of our technology and ultimately benefit physicians and improve patient care.”
Rob Cascella, president and chief executive officer, said: “The agreement to acquire Sentinelle Medical is a further example of our strategy to maintain a leadership position in women’s healthcare. Magnetic Resonance (MR) is rapidly becoming a standard of care for breast cancer screening of women indicated as having a high risk of developing the disease.
“This acquisition should further strengthen our comprehensive portfolio of product offerings in the areas of breast cancer detection and intervention.”
The transaction is expected to close during the third calendar quarter and is subject to customary closing conditions, including, among others, Sentinelle Medical stockholder approval and Canadian judicial approval.
Headquartered in Toronto, Canada, Sentinelle Medical, a privately-held medical imaging company develops advanced breast imaging technologies using high-field strength MRI that will help in the earlier detection and better treatment of breast cancer.