BEDFORD (dpa-AFX) - Diagnostics and Medical imaging systems company Hologic Inc. (HOLX), announced Wednesday the acquisition of TCT International Co. Ltd., a privately-held distribution unit in China, in a $135 million cash transaction with a two-year contingent earn out.
Hologic expects the acquisition to be accretive to revenues for fiscal year 2011, but did not specify earnings impact, as it factors charges related to the deal.
TCT's distribution business includes Hologic's ThinPrep Pap Test, related instruments and other diagnostic and surgical products. TCT is also the sole distributor of two other Hologic products. A small portion of TCT's business consists of selling other diagnostic products.
Rob Cascella, president and chief executive officer of Hologic, said,' We firmly believe by controlling a distribution channel as extensive as TCT's, we can better leverage our entire product portfolio to drive growth across multiple market segments.'
Hologic said $35 million of the cash component would be deferred for a year. The earn out is linked to a multiple of the incremental revenue growth in TCT's business. The TCT business would be integrated within Hologic's international operations.
On January 6, Hologic acquired Interlace, the developer, manufacturer and supplier of the MyoSure system, for $126.8 million, plus two annual contingent payments.
For fiscal year 2011, Hologic expects the TCT acquisition to be accretive to earnings, absent the amortization of intangibles related to the transaction and other acquisition-related charges. Revenues for the year would be incremental by about $10 million.
HOLX closed Wednesday's regular trading at $20.82, down $0.68 or 3.16%, on the Nasdaq.
Copyright RTT News/dpa-AFX