It's official: Luminex Corp. bought Nanosphere for $77 million.
The Austin medical diagnostics company said Thursday it has completed its purchase of Nanosphere.
Illinois-based Nanospehre makes diagnostic tools that allow for quick and accurate detection of respiratory, gastroenteric or bloodstream infections.
At the time the purchase was announced, Luminex said it would accelerate its projected revenue growth and expand its product portfolio, exposing the company to new markets.
Austin-based Luminex Corp. has increased its offer to buy Nanosphere by $19 million.
The Austin medical diagnostics company offered to buy Nanosphere for $58 million on May 16. On Monday they company announced it had increased the purchase price to $77 million, or $1.70 a share.
"This increase was in response to an unsolicited third-party offer for Nanosphere at $1.50 a share," Luminex said in a press release. Luminex had previously offered $1.35 a share.
Investors of both companies were pleased, as the share price of each company rose in early-morning trading.
Austin-based Luminex Corp. said Monday it is buying a medical diagnostics company called Nanosphere.
Luminex will pay $1.35 per Nanosphere share, which makes the total value of the transaction $58 million. That offer is a 73 percent premium compared to Nanosphere's previous closing price of 78 cents.
As investors digested this news, Nanosphere's shares soared nearly 70 percent in morning trading. But Luminex shares were down slightly - they had previously closed at $19.63 a share.
According to a statement from Luminex, Illinois-based Nanosphere has diagnostic tools that allow for quick and accurate detection of respiratory, gastroenteric or bloodstream infections.
The boards of directors of both companies unanimously approved the merger.
Luminex noted that this acquisition will "accelerate" their projected revenue growth because Nanosphere's projected 2016 revenue is between $28 million and $30 million. Nanosphere’s total revenue for 2015 was $21 million.
Luminex executives said earlier this year they expected annual revenue between $247 million and $255 million.
"The acquisition of Nanosphere will significantly enhance Luminex's growth trajectory by expanding our product portfolio, delivering access to new markets and strengthening our pipeline of future products to make us the partner of choice for all molecular labs," said Luminex CEO Homi Shamir in a written statement.
Luminex develops biological testing systems. The company's testing systems allow a tiny sample of blood to be tested for dozens of biological markers. It can be used for gene-based research and diagnostics.
The company was founded in 1995, went public in 2000 and employs about 800 people.
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