Hologic adds to breast surgery tech with $310M acquisition

Marlborough women’s health tech company Hologic said on Wednesday it will acquire a U.K.-based company that makes products for use during breast surgery.

Hologic Inc. (Nasdaq: HOLX) said the deal to buy Endomagnetics Ltd. would expand its breast surgery portfolio. Hologic's technology already ranges from a commercial 3D mammography system to testing for cervical cancer, sexually transmitted infections and respiratory illnesses. Hologic also develops surgical technologies for uterine fibroids and abnormal uterine bleeding.

“Endomag’s suite of solutions complements our existing breast surgery portfolio and will provide surgeons and radiologists with an expanded range of options to meet the individual needs of more patients undergoing critical breast cancer procedures,” Erik Anderson, president of breast and skeletal health solutions at Hologic, said in the announcement. 

Endomag says it was founded in 2007 based on research conducted at the University College London and the University of Houston. Now, the company’s products are used by more than 1,000 hospitals in more than 45 countries.

Endomag says the system at the heart of its offerings is a non-radioactive surgical guidance platform. This system uses a probe that works like a metal detector to detect Endomag’s magnetic seed and liquid tracer products. The magnetic seed helps guide doctors closer to the tumor site, and the tracer is designed to identify the most suspicious lymph nodes.

Endomag is based in Cambridge, United Kingdom, and generated $35 million of revenue in the calendar 2023. Hologic said it expects this acquisition to be slightly dilutive to Hologic’s non-GAAP earnings per share in fiscal 2024. The company expects this to break even in 2025.

“With a global footprint and a similar commitment to women’s health, we are excited about the potential of welcoming the Endomag team and our future opportunities together to increase access to these technologies and better serve patients across the breast health continuum of care,” Anderson added.

The Marlborough company reported that it had 6,990 full-time employees as of September 30, 2023. Almost 4,000 of those employees were based in the U.S. 

A spokesperson for Hologic declined to comment further on whether the company plans to operate Endomag as a subsidiary with its current team and employees.