Hologic To Acquire Endomagnetics For Approximately $310M; Endomagnetics Generated ~$35M In Revenue In 2023, Acquisition Expected To Be slightly Dilutive To Adj. EPS In FY24, Breakeven In 2025 And Accretive Thereafter
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Hologic is set to acquire Endomagnetics for about $310M. Endomagnetics, with $35M in revenue for 2023, will have a slight dilutive effect on Hologic's adjusted EPS in FY24, breakeven in 2025, and be accretive thereafter.
April 29, 2024 | 8:10 pm
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Hologic's acquisition of Endomagnetics for $310M, expected to be slightly dilutive to adjusted EPS in FY24, breakeven in 2025, and accretive thereafter.
The acquisition's short-term dilutive impact on EPS suggests a neutral to slightly negative short-term price movement for HOLX. However, the long-term accretive nature of the deal indicates a strategic investment, likely to enhance shareholder value over time. The initial dilution reflects the investment phase, with profitability expected to improve from 2025 onwards.
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IMPORTANCE 75
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