Hologic Acquires Sentinelle Medical for $85 Million

Hologic Inc. has agreed to acquire Sentinelle Medical Inc. for $85 million.

Terms of the merger includes a two-year contingent earn out, payable in cash installments equal to a multiple of the incremental revenue growth in Sentinelle’s business in the two years after the deal closes. Executives with both companies expect to complete the acquisition in the third quarter.

Headquartered in Toronto,Canada, privately-held Sentinelle Medical develops advanced breast imaging technologies using high-field magnetic resonance imaging (MRI) breast coils, tables and visualization software. Hologic’s management team said the merger will help the Bedord, Mass.-based firm solidify its market position in the women’s healthcare sector.

“The agreement to acquire Sentinelle Medical is an example of our strategy to maintain a leadership position in women’s healthcare,” said Rob Cascella, Hologic president and CEO. “Magnetic resonance [MR] is rapidly becoming a standard of care for breast cancer screening of women indicated as having a high risk of developing the disease. This acquisition should further strengthen our portfolio of product offerings in the areas of breast cancer detection and intervention.”

Sentinelle Medical reported $15 million in revenue in 2009. Hologic executives expect the merger to be neutral to earnings in fiscal 2001, absent the amortization of intangibles related to the transaction and other acquisition-related charges.

“We are proud of the innovations we have introduced with our MRI solutions,” said Cameron Piron, Sentinelle Medical President and CEO. “This merger is a natural fit. Our expertise in MR breast imaging combined with Hologic’s resources should further accelerate the adoption of our technology and ultimately benefit physicians and improve patient care.”

Hologic develops, manufactures and supplies diagnostic products, medical imaging systems and surgical products used to detect and treat women’s health conditions.