Hologic Completes Acquisition of Gynesonics, Inc.

Rhea-AI Summary

Hologic (HOLX) has completed its previously announced acquisition of Gynesonics, a private medical device company, for approximately $350 million. The acquisition brings the Sonata System into Hologic's portfolio, expanding their range of minimally invasive solutions for heavy periods and fibroids.

The Sonata System is a technology for diagnostic intrauterine imaging and transcervical treatment of symptomatic uterine fibroids. It combines real-time intrauterine ultrasound guidance with targeted radiofrequency ablation in an incisionless procedure. The system has already been used to treat thousands of women, according to Gynesonics' CEO Skip Baldino.

Positive

• Acquisition expands Hologic's product portfolio in women's health
• Adds innovative Sonata System technology for minimally invasive fibroid treatment
• Strengthens market position in gynecological surgical solutions

Negative

• Significant cash outlay of $350 million for acquisition

Insights

Financial Analyst

The $350 million acquisition of Gynesonics represents a strategic expansion of Hologic's women's health portfolio. The Sonata System addresses a significant market opportunity in uterine fibroid treatment, estimated at $3-4 billion annually in the US alone. This tuck-in acquisition aligns with Hologic's capital allocation strategy and strengthens their competitive position in minimally invasive gynecological procedures. The deal's structure suggests immediate accretion to revenue growth, though likely minimal initial impact on earnings. The technology's FDA clearance and established reimbursement pathways reduce regulatory and commercial risks. Integration costs and revenue synergies should materialize within 12-18 months through Hologic's existing sales channels.

Medical Device Expert

The Sonata System's transcervical radiofrequency ablation technology represents a significant advancement in uterine fibroid treatment. Its combination of real-time intrauterine ultrasound with targeted therapy offers a compelling alternative to more invasive surgical options. The technology's competitive advantage lies in its incisionless approach, which typically results in faster recovery times and reduced complications compared to traditional surgical interventions. Within Hologic's portfolio, this acquisition fills a strategic gap between diagnostic solutions and surgical treatments, potentially capturing patients who might otherwise delay treatment due to concerns about surgical intervention.

Market Research Analyst

This acquisition strengthens Hologic's position in the rapidly growing global fibroid treatment market. The deal timing is opportune, as the minimally invasive surgical devices market is experiencing a post-pandemic resurgence, with a projected CAGR of 7.8% through 2028. Gynesonics' established presence in key European markets provides Hologic with immediate international expansion opportunities. The integration into Hologic's extensive distribution network should accelerate Sonata System's market penetration, particularly in underserved markets. Expect enhanced market share gains in the gynecological devices segment within 24 months.

MARLBOROUGH, Mass.--(BUSINESS WIRE)-- Hologic, Inc. (Nasdaq: HOLX), a global leader in women’s health, has completed its previously announced acquisition of Gynesonics, Inc. (Gynesonics®), a privately held medical device company focused on the development of minimally invasive solutions for women’s health, for approximately $350 million.

“We are excited to complete the acquisition of Gynesonics and to increase access to their Sonata® System, which complements and expands our range of minimally invasive solutions for heavy periods and fibroids,” said Brandon Schnittker, President of Surgical Solutions at Hologic. “As global champions for women’s health, we are dedicated to empowering surgeons with diverse, cutting-edge treatment options as we strive to transform women’s lives for the better.”

The Sonata System is a technology intended for diagnostic intrauterine imaging and transcervical treatment of certain symptomatic uterine fibroids, including those associated with heavy menstrual bleeding. The technology combines real-time intrauterine ultrasound guidance with targeted radiofrequency ablation in an incisionless procedure.

“As we embark on this new phase with Hologic, we are excited to see the continued success of the Sonata System, which has already made a difference in the lives of thousands of women,” said Skip Baldino, President and Chief Executive Officer of Gynesonics. “Hologic’s commitment to women’s health and their leadership in innovation make them a perfect fit for our organization.”

About Hologic

Hologic, Inc. is a global leader in women’s health, dedicated to developing innovative medical technologies that effectively detect, diagnose and treat health conditions and raise the standard of care around the world. For more information on Hologic, visit www.hologic.com and connect with us on LinkedIn, Facebook, X (Twitter), Instagram and YouTube.

Forward-Looking Statements

This news release may contain forward-looking information that involves risks and uncertainties, including statements about Hologic’s plans, objectives, expectations and intentions. Such statements include, without limitation: financial or other information based upon or otherwise incorporating judgments or estimates relating to future performance, events or expectations; strategies, positioning, resources, capabilities and expectations for future performance; and financial outlook and other guidance. These forward-looking statements are based upon assumptions made as of this date and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those anticipated.

Risks and uncertainties that could adversely affect Hologic’s business and prospects, and otherwise cause actual results to differ materially from those anticipated, include without limitation: the possibility that the anticipated benefits from the transaction or products cannot be fully realized or may take longer to realize than expected; the possibility that costs or difficulties related to the integration of Gynesonics’ operations with those of Hologic will be greater than expected; the coverage and reimbursement decisions of third-party payers and the guidelines, recommendations, and studies published by various organizations relating to the use of products and treatments; the ability to successfully manage ongoing organizational and strategic changes, including Hologic’s ability to attract, motivate and retain key employees; the development of new competitive technologies and products; regulatory approvals and clearances for products; the anticipated development of markets in which products are sold into and the success of products in these markets; the anticipated performance and benefits of products; estimated asset and liability values; anticipated trends relating to Hologic’s financial condition or results of operations; and Hologic’s capital resources and the adequacy thereof.

The risks included above are not exhaustive. Other factors that could adversely affect Hologic’s business and prospects are described in Hologic’s filings with the SEC. Hologic expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements presented herein to reflect any change in expectations or any change in events, conditions or circumstances on which any such statements are based.

Hologic, The Science of Sure, Gynesonics and Sonata are trademarks and/or registered trademarks of Hologic, Inc. and/or its subsidiaries in the United States and/or other countries.

Source: Hologic, Inc.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250106624247/en/

Media Contact

Bridget Perry

Senior Director, Corporate Communications

(+1) 508.263.8654

bridget.perry@hologic.com

Investor Contact

Michael Watts

Corporate Vice President, Investor Relations

(+1) 858.410.8514

michael.watts@hologic.com

Source: Hologic, Inc.

FAQ

How much did Hologic (HOLX) pay for the Gynesonics acquisition?

Hologic paid approximately $350 million to acquire Gynesonics.

What technology does Hologic gain from the Gynesonics acquisition?

Hologic gains the Sonata System, a technology that combines real-time intrauterine ultrasound guidance with targeted radiofrequency ablation for treating uterine fibroids.

What medical conditions does the Sonata System treat?

The Sonata System treats symptomatic uterine fibroids, including those associated with heavy menstrual bleeding.

How does the Gynesonics acquisition expand Hologic's product portfolio?

The acquisition expands Hologic's range of minimally invasive solutions for heavy periods and fibroids, complementing their existing women's health products.

What are the key features of the Sonata System acquired by HOLX?

The Sonata System is an incisionless procedure that combines real-time intrauterine ultrasound guidance with targeted radiofrequency ablation for diagnostic imaging and treatment.