Hologic's $3.7 billion cash buyout of molecular diagnostics darling Gen-Probe ($GPRO) will close by the end of this month, both companies disclosed. And it is clear executives from the soon-to-be-acquired outfit will have cachet in the new order.
Gen-Probe chairman and CEO Carl Hull will stay on for at least 15 months as a senior vice president and general manager of the merged entity's combined diagnostics business. Other Gen-Probe managers are fielding similar offers, according to the joint announcement.
Hull, in a prepared statement, said he is "committed to working with [Hologic CEO Rob Cascella] and our combined teams and fully expect a smooth integration."
It makes sense for Hologic ($HOLX) to retain as much Gen-Probe talent as possible. The deal helps transform Hologic into a major molecular diagnostics player focused on sexually transmitted diseases, adding tests for chlamydia, gonorrhea, the human papillomavirus and the parasitic STD known as trichomoniasis to its own roster of women's health products. And in addition to buying the product, the sales, scientific and executive talent will help Hologic advance its growth strategy even more. Gen-Probe and its 1,400 employees also market instruments, blood screening and prostate oncology services.
Gen-Probe shareholders will vote on the transaction in a special meeting July 31.
- here's the release
- read The Wall Street Journal's take (sub. req.)