Hologic acquires selenium photoconductor supplier AEG Elektrofotografie

21 May 2006

Bedford Mass, USA. Diagnostic imaging supplier Hologic, Inc. (NASDAQ:HOLX) has acquired German company AEG Elektrofotografie GmbH and its group of related companies for a purchase price of 21 million.

AEG Elektrofotografie, a privately held company headquartered in Warstein, Germany, is a leading manufacturer of photoconductor materials, and is Hologic's sole supplier of amorphous selenium photoconductor coatings employed in its Selenia full-field digital mammography detectors. AEG Elektrofotografie also develops, manufactures, and sells photoconductor materials for use in a variety of electro photographic applications, including copying and printing. AEG Elektrofotografie's estimated revenue in calendar year 2005 was 42.7 million. Hologic expects this acquisition to be accretive to earnings.

The purchase price consists of 16,297,650 in cash and an additional 109,720 shares of Hologic Common Stock. The common stock is subject to certain lockups based on achieving an EBITDA target or if the stock price increases/decreases by a set amount. An earn-out of 1.7 million will be payable in cash if AEG Elektrofotografie calendar year 2006 EBITDA exceeds a pre-set amount.

With the acquisition of AEG Elektrofotografie, Hologic takes direct control over a critical step in its detector manufacturing process. Hologic and AEG Elektrofotografie had previously developed a close collaborative relationship, including in manufacturing and research and development. The combination of the companies should facilitate further manufacturing efficiencies and accelerate research and development of new detector products.

"The agreement to acquire AEG Elektrofotografie is consistent with the Company's long-term strategic plan," said Jack Cumming, Hologic Chairman and Chief Executive Officer. "With our amorphous selenium detector technology, we are well positioned to benefit from the transition of analog to digital mammography. Bringing amorphous selenium technology in-house should allow us to more efficiently manage our supply chain, improve manufacturing margins and respond to the continued growth of Selenia and future product development requirements."

"We are pleased to ensure that our long-standing tradition of providing innovative high quality products to our customers will continue as a result of this business transaction," said Manfred Wagner, Chairman of the Managing Board of AEG Elektrofotografie. "We are confident that Hologic along with our talented team will work collaboratively to build an even stronger platform for x-ray imaging applications."

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