The $1.35-per-share, all-cash deal consists of a 15-day tender offer for NSPH shares by Luminex, followed by a merger to buy up and untendered shares, the companies said. It’s expected to close during the 2nd quarter, they said.
The deal also calls for Luminex to pay off some $25 million of Nanosphere’s debt. Luminex said it expects the deal to add $13 million to $16 million to revenues this year and boost adjusted earnings by the end of 2017.
Nanosphere is forecast to post 2016 sales of $28 million to $30 million this year. The company posted sales of $21 million last year and today reported that 1st-quarter losses fell -11.3% to -$6.7 million, or -55¢ per share, on sales growth of 42.7% to $6.6 million.
“The acquisition of Nanosphere will significantly enhance Luminex’s growth trajectory by expanding our product portfolio, delivering access to new markets and strengthening our pipeline of future products to make us the partner of choice for all molecular labs,” Luminex president & CEO Homi Shamir said in prepared remarks. “The deal demonstrates prudent execution of our fourth strategic growth pillar – leveraging our financial strength to accelerate growth in our target markets.”
“Luminex will recognize significant strategic benefit moving forward as our customer base and leverage in our expanding menu contribute to accelerated revenue growth,” added Nanosphere president & CEO Michael McGarrity. “The resources and reputation for excellence that Luminex carries in the market will greatly benefit our customers and employees.”