The transaction, which closed today, broadens Hologic's Breast Health product portfolio and expands the Company's role in the clinical continuum of care for breast cancer patients. Specifically, Faxitron's products and channel will enable Hologic to play a larger role in breast conserving surgery, an adjacent growth market for the Company's interventional breast business.
"Faxitron, like Hologic, has built a strong brand focused on improving the patient experience with market-leading products from digital specimen radiography to breast lesion localization to sentinel lymph node biopsy solutions," said Pete Valenti, Hologic's division president, Breast and Skeletal Health Solutions. "Together, we will extend our shared focus on innovation and expand our ability to improve breast health along each step of the patient's journey, which begins with our market-leading mammography solutions."
Faxitron markets a broad portfolio of products across major categories including digital specimen radiography, breast lesion localization, and sentinel lymph node biopsy. The company sells its products mainly to breast surgeons and pathologists. The company has a history of organic innovation, most recently with the introduction of VisionCT, the world's first 3D breast specimen-designated CT system to offer 360-degree images of excised lesions.
"Acquiring Faxitron is consistent with our capital deployment goals," said Steve MacMillan, Hologic's Chairman, president, and CEO. "This is a great tuck-in acquisition that leverages our existing strength in the breast health channel, while providing attractive growth and return on invested capital."
Faxitron generated approximately $27 million of revenue in their last fiscal year. The acquisition is expected to be roughly neutral to Hologic's non-GAAP earnings per share for the remainder of fiscal 2018 and fiscal 2019, and is expected to be accretive thereafter.