Luminex to snatch up Nanosphere in $58M all-cash deal

Luminex ($LMNX) is shelling out $58 million for Nanosphere ($NSPH) to get its hands on the company's rapid molecular microbiology tests and boost its lab presence.

As part of the all-cash deal, Austin, TX-based Luminex will make a tender offer for all outstanding shares of Nanosphere for $1.35 per share in cash. Luminex will also assume $25 million of Nanosphere's debt, the companies said in a statement.

Luminex is expecting big things from the acquisition. Northbrook, IL-based Nanosphere's forecasted $28-$30 million in 2016 revenue will "immediately accelerate" Luminex's own revenue growth, the company said. The company sees the deal as boosting its adjusted earnings by the end of 2017.

Nanosphere, which brought in $21 million in revenue last year, brings a strong lab presence and molecular diagnostic menu to the table. The company boasts more than 240 customers.

The Verigene test cartridge, which is inserted into the benchtop reader for analysis--Courtesy of Nanosphere

And Nanosphere's Verigene technology "leads in the high-growth bloodstream infection segment and complements Luminex's current infectious disease portfolio," the companies said. Verigene maps the genome of bacteria and relies on gold nanoparticles to produce results with high specificity.

"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," Luminex CEO Homi Shamir said in a statement.

Luminex, like many diagnostic companies, has struggled in recent years due to tougher reimbursement standards for diagnostics. The company responded by cutting some of its workforce and closing its offices in Brisbane, Australia. The move was meant to save between $5 million and $6 million in costs.

Luminex also said that it would invest in R&D to spur development of its molecular diagnostics business. Its recent pact with Nanosphere reflects its commitment to expand in new sectors. "The deal demonstrates prudent execution of our fourth strategic growth pillar--leveraging our financial strength to accelerate growth in our target markets," Shamir said.

- here's the statement

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