Hologic, a developer of diagnostic, medical imaging and surgical products, has purchased Gen-Probe for a total net purchase price of $3.8bn.
Under the acquisition, Gen-Probe will now be integrated into Hologic as a subsidiary.
Following the close of the transaction, the combined company expects to realize approximately $75m in cost synergies within three years.
In addition, the combined company expects to have free cash flows, which will be used primarily to reduce debt with the expectation to return to pre-transaction leverage levels within three years.
Hologic said the transaction is expected to be $0.20 accretive to its non-GAAP adjusted earnings per share in fiscal 2013.
Hologic president and chief executive officer Rob Cascella with Gen-Probe’s suite of technologies, the company is now established as a premier provider of diagnostic solutions.
"I am excited to work with Carl Hull to capitalize on the many opportunities ahead for our Diagnostics business and for our company," Cascella added.
"We are committed to a seamless integration of Gen-Probe and look forward to delivering on the synergies and growth potential presented by this combination."