Hologic to Buy Endomagnetics for $310 Million

Hologic has begun a deal to acquire Endomagnetics, a privately-held developer of breast cancer surgery technologies. The deal is valued at about $310 million.
 
Cambridge, U.K.-based Endomagnetics offers breast surgery localization and lymphatic tracing technologies. Its portfolio includes the Magseed marker to magnetically localize tissue prior to surgery and the Magtrace lymphatic tracing injectable for breast cancer staging. The company also has the Sentimag platform, which supports localization and lymphatic tracing.
 
Sentimag uses a probe that operates like a metal detector. It’s used to detect Endomag’s Magseed and Magtrace to remove tumors and perform minimally invasive staging procedures.
 
Erik Anderson, Hologic’s president of Breast and Skeletal Health Solutions, said Endomag’s suite of solution complements Hologic’s breast surgery portfolio and provides surgeons and radiologists with and expanded variety of options to meet individual needs of more patients having breast cancer procedures.
 
“With a global footprint and a similar commitment to women’s health, we are excited about the potential of welcoming the Endomag team and our future opportunities together to increase access to these technologies and better serve patients across the breast health continuum of care,” Anderson said.
 
Endomag pocketed about $35 million in revenue in the calendar year 2023. The acquisition is projected to be slightly dilutive to Hologic’s non-GAAP earning per share in fiscal year 2024, break even in 2025, and accretive after that.
 
“We are delighted to attract the strength and focus of Hologic to power the next phase of our growth,” said Eric Mayes, CEO of Endomag. “Our team is encouraged by our cultural alignment and the potential to strengthen a broader portfolio of solutions to improve women’s health globally.”
 
Earlier this month, Hologic also began a first-of-its-kind collaboration with Bayer to produce a coordinated solution for contrast-enhanced mammography.