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Hologic Completes Cynosure Buyout, Boosts Core Business
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Hologic, Inc. (HOLX - Free Report) continues to seek growth through merger and acquisitions. It considers inorganic expansion an important part of its future growth strategy as it acts as a supplement to its internal innovation, commercial execution and international expansion.
Recently, the company announced the completion of it earlier declared acquisition of marketer of aesthetic treatment systems, Cynosure, Inc. for $66.00 per share in cash, which corresponds to an equity value of approximately $1.65 billion.
Cynosure develops, manufactures and markets aesthetic treatment systems. The systems aid plastic surgeons, dermatologists and other medical practitioners to perform non-invasive and minimally invasive procedures. The company also markets radiofrequency energy-sourced medical devices for precision surgical applications.
The company sells its products globally under the Cynosure, Palomar, ConBio and Ellman brand names through a direct sales force in the U.S., Canada, France, Morocco, Germany, Spain, the U.K, Australia, China, Japan and Korea. It also sells its products through international distributors in approximately 120 other countries.
Post the completion of the deal, Cynosure has become a wholly owned subsidiary of Hologic. Hologic is highly optimistic about the inclusion of Cynosure to its business which, according to the company, will fundamentally reshape its business portfolio. It plans to discuss the financial implications of the acquisition on May 10, during its second-quarter fiscal 2017 earnings call.
Shares of Hologic have been treading higher over the past month, since the Cynosure acquisition news surfaced. Also, during the same period, the stock strongly outperformed the broader industry. It returned 3.14% as against the Zacks categorized Medical Instrument industry's loss of 0.01%. With completion of the deal, we expect this growth trend to continue.
Zacks Rank & Key Picks
Hologic currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the medical product sector include Inogen, Inc. (INGN - Free Report) , Bovie Medical Corporation and ResMed, Inc. (RMD - Free Report) . Inogen sports a Zacks Rank #1 (Strong Buy) while the other two companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen gained 82.1% in the last one year compared with the S&P 500’s gain of 15.1%. The company has a stellar four-quarter average earnings surprise of over 49.08%.
Bovie Medical surged 58.7% in the last one year compared with the S&P 500. It has a four-quarter average earnings surprise of 28.7%.
ResMed gained over 25.5% in the past one year, better than the S&P 500 mark. It also has a trailing average earnings surprise of 0.31%.
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Hologic Completes Cynosure Buyout, Boosts Core Business
Hologic, Inc. (HOLX - Free Report) continues to seek growth through merger and acquisitions. It considers inorganic expansion an important part of its future growth strategy as it acts as a supplement to its internal innovation, commercial execution and international expansion.
Recently, the company announced the completion of it earlier declared acquisition of marketer of aesthetic treatment systems, Cynosure, Inc. for $66.00 per share in cash, which corresponds to an equity value of approximately $1.65 billion.
Cynosure develops, manufactures and markets aesthetic treatment systems. The systems aid plastic surgeons, dermatologists and other medical practitioners to perform non-invasive and minimally invasive procedures. The company also markets radiofrequency energy-sourced medical devices for precision surgical applications.
The company sells its products globally under the Cynosure, Palomar, ConBio and Ellman brand names through a direct sales force in the U.S., Canada, France, Morocco, Germany, Spain, the U.K, Australia, China, Japan and Korea. It also sells its products through international distributors in approximately 120 other countries.
Post the completion of the deal, Cynosure has become a wholly owned subsidiary of Hologic. Hologic is highly optimistic about the inclusion of Cynosure to its business which, according to the company, will fundamentally reshape its business portfolio. It plans to discuss the financial implications of the acquisition on May 10, during its second-quarter fiscal 2017 earnings call.
Shares of Hologic have been treading higher over the past month, since the Cynosure acquisition news surfaced. Also, during the same period, the stock strongly outperformed the broader industry. It returned 3.14% as against the Zacks categorized Medical Instrument industry's loss of 0.01%. With completion of the deal, we expect this growth trend to continue.
Zacks Rank & Key Picks
Hologic currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the medical product sector include Inogen, Inc. (INGN - Free Report) , Bovie Medical Corporation and ResMed, Inc. (RMD - Free Report) . Inogen sports a Zacks Rank #1 (Strong Buy) while the other two companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen gained 82.1% in the last one year compared with the S&P 500’s gain of 15.1%. The company has a stellar four-quarter average earnings surprise of over 49.08%.
Bovie Medical surged 58.7% in the last one year compared with the S&P 500. It has a four-quarter average earnings surprise of 28.7%.
ResMed gained over 25.5% in the past one year, better than the S&P 500 mark. It also has a trailing average earnings surprise of 0.31%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging
phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>