M&A Report

Hologic Turns COVID-19 Testing Cash into Strategic Acquisitions in Core Women’s Health Space

M&A deal making in the diagnostics marketing is off to a very fast start in 2021. The biggest deal announced in January was PerkinElmer’s bid to expand its infectious disease testing capabilities by acquiring U.K.-based immunology firm Oxford Immunotec for $491 million (with the potential to rise to $591 million). However, the most aggressive player in space was Hologic, which made a pair of key acquisitions.

The $230 Million Biotheranostics Acquisition

On Jan. 6, Hologic announced plans to acquire San Diego-based, privately held Biotheranostics for $230 million. The deal makes perfect sense. Biotheranostics’ cancer genetics diagnostics products for breast and metastatic cancers, including the PCR-based Breast Cancer Index and CancerType ID tests (the former of which is included in clinical practice guidelines for breast cancer), are a perfect fit that will provide a boost to Hologic’s position in women’s health and diagnostic testing. Collectively, the Biotheranostics’ products generated $33 million in revenues in 2020.

The deal, which is scheduled to close in February, means that patients facing the challenges of metastatic cancer will have broader access to the CancerType ID offering that can aid in the diagnosis of the tumor type and subtypes representing 95 percent of all solid tumors, noted Biotheranostics’ CEO Don Hardison in a statement.

The $64 Million Somatex Medical Acquisition

Announcement of the Biotheranostics acquisition came just two days after Hologic announced the closing of still another women’s health provider, Somatex Medical, for $64 million. In addition to boosting Hologic’s presence in Europe, acquisition of the Berlin-based manufacturer of minimally invasive devices for tumor diagnostics, biopsy and interventional specialties furthers the company’s global objective to provide comprehensive breast healthcare portfolio.

There May Be More to Come

The back-to-back deals in the first week of the new year signifies that Hologic is determined to remain focused on its core women’s health business even though it’s currently reaping huge revenues in COVID-19 testing. Of course, COVID-19 testing is providing the cash flow that enables Hologic to make these strategic moves. And there’s a pretty good chance that Hologic’s shopping spree will continue. The company posted $1.35 billion in revenues last year—and that was just in Q4! “Using our strong cash flow to further expand our core businesses into large, fast-growing adjacencies is a key goal of our capital deployment strategy,” noted Hologic Chairman, President and CEO Steve MacMillan in announcing the Somatex deal.

Here’s a summary of the only key new M&A diagnostic deals announced in January 2021:


Acquiring Company Target(s) Deal Summary
Thermo Fisher Scientific Mesa Biotech
  • Price: Up to $591 million including $491 million cash up front and up to $100 million cash if milestones reached
  • Status: Expected to close in Q1
  • Acquisition of molecular test firm with 500 employees that sells PCR-based rapid point-of-care platform for infectious diseases, including SARS-CoV-2, influenza A and B, RSV and Strep A
PerkinElmer Oxford Immunotec
  • Price: $591 million cash representing $22 for each outstanding share of Oxford, a 28.3% premium on Jan. 5 closing price
  • Status: No closing date announced
  • Acquisition enables PerkinElmer to add tuberculosis detection to its infectious disease testing portfolio
GTCR equity firm Cole-Parmer ZeptoMetrix
  • Price: Undisclosed
  • Status: Closed
  • Acquisition of maker of quality control standards and verification panels for infectious disease molecular testing
Hologic Biotheranostics
  • Price: $230 million
  • Status: Expected to close in February
  • Acquisition of producer of molecular tests for breast and metastatic cancers boosts Hologic’s position in women’s health market
Hologic Somatex Medical Technologies
  • Price: $64 million
  • Status: Closed
  • Acquisition of manufacturer of minimally invasive devices for tumor diagnostics, biopsy and interventional specialties furthers Hologic’s objective to provide comprehensive breast healthcare portfolio
MilliporeSigma AmpTec
  • Price: Undisclosed
  • Status: Closed
  • Acquisition of Germany-based mRNA contract development and manufacturing organization boosts MilliporeSigma’s capacity to provide mRNA for vaccines, treatments and diagnostics
MyDNA Gene by Gene
  • Price: Undisclosed
  • Status: Closed
  • Merger combining MyDNA’s genetic wellness tests for nutrition, fitness, and skincare with Gene by Gene’s (and its FamilyTreeDNA business’) genetic testing services for ancestry, forensics, paternity and COVID-19

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