Hologic Inc. (NSDQ:HOLX) closed its $85 million acquisition of Sentinelle Medical Inc. and its line of MRI breast coils, tables and visualization software.
The Bedford, Mass.-based company announced the deal in July, saying it would pay a "two-year contingent earn out" on top of the 85 large for Toronto-based company.
Hologic said the earn-out "will be payable in cash installments equal to a multiple of the incremental revenue growth in Sentinelle Medical’s business" during its first two years under the Hologic umbrella.
Sentinelle posted sales of about $15 million last year. When it announced the deal last month, Hologic said the agreement would expand its reach into the women’s health market “by offering additional products through existing sales channels,” capitalizing on Sentinelle’s high-performance, “best-in-class” MR coils “to expedite new advances in breast imaging."
Hologic also notched a reimbursement win for its ThinPrep pap smear system in Scandinavia, after the Norwegian cervical screening program began reimbursing for the liquid-based cytology technology used by the Hologic system.
The decision opens the door for the company to expand its Norwegian footprint. Senior VP and international GM David Harding said seven of the 17 screening labs in Norway already using ThinPrep and more than 100,000 of the tests are already bought annually in the land of lutefisk. About 500,000 pap smears are conducted annually as part of Norway’s national cervical cancer screening program.