Inverness Medical Innovations, a leading rapid point-of-care diagnostics company will acquire Matria Healthcare in a deal worth $1.18 billion. Marietta, Ga.-based Matria is a provider of health enhancement, disease management and high-risk pregnancy management programs and services. The proposed deal calls for Massachusetts-based Inverness to absorb Matria with Inverness acquiring all outstanding shares of Matria common stock for $39 per share ($6.50 in cash plus $32.50 in convertible preferred stock). The breakdown of the acquisition consists of approximately $900 million for the Matria common stock acquisition and $280 million to cover Matria's outstanding debt.
This will make the 12th acquisition in as many months for Inverness, a maker of home pregnancy tests and fertility monitoring kits. It acquired heart disease diagnostics company Biosite last June for $1.67 billion following a bidding war with Beckman Coulter Inc. In October, Inverness bought Alere, which develops home monitoring systems for patients with chronic diseases, for $302 million, which was quickly followed by the purchase of New Jersey-based ParadigmHealth, which offers disease management services for patients with complex health problems, for $230 million in November.
Based on the company's statement, Inverness plans to consolidate Matria with Alere and ParadigmHealth to form a combined organization focused on the growing health management sector.
In a conference call, Inverness CEO Ron Zwanziger reported that pro forma revenues from these three companies will bring in roughly $500 million, giving Inverness a dominant position in the estimated $1.8 billion health monitoring market. Or, as Zwanziger told a packed house at JP Morgan several weeks ago, "Extending diagnostic testing from disease identification to risk assessment to patient management greatly extends our business potential."