Texas-based Luminex has agreed to acquire Illinois-based bacterial testing lab Nanosphere in a deal valued at $83 million. The transaction value, at $1.35 per share, was about an 80 percent premium over Nanosphere’s recent trading price. It includes an acquisition price of $58 million and the paydown of $25 million in Nanosphere’s debt. Luminex said the deal was an ideal strategic fit and would complement its current infectious disease portfolio. It is being completed with cash on hand. Nanosphere has developed and distributes molecular tests that focus on bloodstream, gastrointestinal and respiratory infections, many of them hospital-acquired and aggressive in nature. Its Verigene testing platform can perform such tests with a turnaround time of about two hours, giving clinicians enough time to formulate appropriate treatment plans. It has about 240 clients nationwide to date. The company has been on a rapid growth path, booking $21 million in revenue for 2015 and is forecast to reach between $28 million and $30 million for calendar 2016. “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 […]
Texas-based Luminex has agreed to acquire Illinois-based bacterial testing lab Nanosphere in a deal valued at $83 million.
The transaction value, at $1.35 per share, was about an 80 percent premium over Nanosphere’s recent trading price. It includes an acquisition price of $58 million and the paydown of $25 million in Nanosphere’s debt. Luminex said the deal was an ideal strategic fit and would complement its current infectious disease portfolio. It is being completed with cash on hand.
Nanosphere has developed and distributes molecular tests that focus on bloodstream, gastrointestinal and respiratory infections, many of them hospital-acquired and aggressive in nature. Its Verigene testing platform can perform such tests with a turnaround time of about two hours, giving clinicians enough time to formulate appropriate treatment plans. It has about 240 clients nationwide to date. The company has been on a rapid growth path, booking $21 million in revenue for 2015 and is forecast to reach between $28 million and $30 million for calendar 2016.
“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,” said Chief Executive Officer Homi Shamir. “The deal demonstrates prudent execution of our fourth strategic growth pillar—leveraging our financial strength to accelerate growth in our target markets.”
Luminex officials said the deal would be accretive to its bottom line earnings by the end of 2017.
“Luminex will recognize significant strategic benefit moving forward as our customer base and leverage in our expanding menu contribute to accelerated revenue growth,” said Nanosphere CEO Michael McGarrity.
Under the terms of the deal, Nanosphere would operate as a wholly-owned subsidiary of Luminex. The deal is expected to close by the second half of this year. The announcement of the deal boosted Nanosphere’s stock by about 80 percent, to around $1.30 per share.
Takeaway: Luminex will boost its portfolio in hospital-acquired infection testing with the acquisition of Nanosphere.
