Hologic to acquire Suros Surgical for $240 million

By Elaine Rigoli

Tampa, Fla., April 17 - Hologic, Inc. has agreed to acquire Suros Surgical Systems, Inc. for about $240 million plus a two-year earn out, according to a company news release.

The closing consideration will consist of $132 million in cash and an additional $108 million payable, at the election of Hologic, in cash, shares of Hologic common stock or a combination thereof, the release said.

The earn-out will be payable in two annual cash installments equal to the incremental revenue growth in Suros Surgical's business in the two years following the closing.

The transaction, expected to close by the end of the second calendar quarter of 2006, will be structured as a merger of a Hologic acquisition subsidiary into Suros Surgical, whereby Suros Surgical will become a wholly owned subsidiary of Hologic.

Suros Surgical's revenue in calendar 2005 was $27.2 million, representing 71% growth over the previous year.

Hologic said it expects sales related to this acquisition in the 2006 calendar year to be in excess of $40 million.

Suros Surgical is an Indianapolis-based medical-device manufacturer of minimally invasive methods of tissue excision and biopsy within multiple surgical specialties.

Located in Bedford, Mass., Hologic develops diagnostic and medical imaging systems for digital radiography and breast imaging.

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