Bard has reached a definitive agreement to acquire SenoRx for a purchase price of $11.00 per share in cash, totaling approximately $200m, net of cash acquired.
The transaction which is approved by the boards of directors of both companies, is expected to be structured as a merger subject to the approval of SenoRx’s shareholders and the satisfaction of customary conditions, including Hart-Scott-Rodino clearance.
SenoRx said that it markets EnCor stereotactic-guided and MRI-guided breast biopsy systems, the Gel Mark line of breast tissue markers and the Contura balloon catheter for the treatment of breast cancer, and had 2009 revenues of $55.6m. Upon completion of the merger, the SenoRx organisation is expected to become part of Bard’s Peripheral Vascular division.
Bard said that the addition of SenoRx will expand its business beyond its current portfolio of products used in ultrasound-guided procedures to include breast biopsy devices designed to work in each of these imaging modalities.
Based on the anticipated completion of the merger in the third quarter, Bard said that it expects this transaction to dilute fiscal 2010 GAAP earnings by approximately $0.08 – $0.11 per share and 2010 earnings, excluding items that affect comparability between periods, by approximately $0.03 – $0.06 per share.
Timothy Ring, chairman and CEO of Bard, said: “The SenoRx acquisition represents a very compelling opportunity for Bard, enabling us to provide products across all breast biopsy and marker segments in addition to providing Bard its first therapeutic device for site-specific partial breast irradiation after lumpectomy procedures.
“SenoRx brings product innovation in breast care and we are confident that the combination will result in positive benefits for hospitals, doctors and patients.”