Hologic Inc. (NSDQ:HOLX) agreed to acquire Sentinelle Medical Inc. for $85 million plus contingencies.
The deal calls for Bedford, Mass.-based Hologic to pay a "two-year contingent earn out," according to a press release, for Toronto-based Sentinelle, which makes MRI breast coils, tables and visualization software.
The earn-out involves cash payments equal to a multiple of the incremental revenue growth in Sentinelle Medical’s business in the two years following the deal’s consummation, according to the release. Hologic said it expects the buyout to close during the third quarter.
Sentinelle posted sales of about $15 million last year. Hologic said the deal expands 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," according to the release.
Hologic, which posted a second-quarter profit of $20.6 million during the three months ended March 27, became the first company to win European certification for a mammography system last month after the European Reference Organization Council for Quality Assured Breast Screening and Diagnostic Services granted its Selenia system a “Mammographic Type Test” certification.
