Hologic (Bedford, Massachusetts), a provider of diagnostic and digital imaging systems focused on women's health, reported acquiring AEG Elektrofotografie (Warstein, Germany) and its group of related companies for EUR 21 million ($26.56 million) subject to adjustment, plus a one-year earn-out of EUR 1.7 million.

The price consists of about EUR 16.3 million in cash and another 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. The earn-out will be payable in cash if AEG Elektrofotografie calendar year 2006 EBITDA exceeds a pre-set amount.

Privately held, AEG manufactures photoconductor materials and is Hologic's sole supplier of amorphous selenium photoconductor coatings used in its Selenia full-field digital mammography detectors.

AEG also develops photoconductor materials for use in a variety of electro photographic applications, including copying and printing. Its estimated revenue in calendar year 2005 was EUR 42.7 million.

With the acquisition of AEG, Hologic said it takes direct control over a critical step in its detector manufacturing process. It said they previously had developed a close relationship, including manufacturing and R&D.

"With our amorphous selenium detector technology, we are well positioned to benefit from the transition of analog to digital mammography," said Jack Cumming, chairman and CEO of Hologic. "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."

Hologic said it expects the acquisition to be accretive to earnings.

Serologicals (Norcross, Georgia) reported completing its previously disclosed $64.5 million acquisition of Linco (St. Charles, Missouri), a private life sciences company focused on supplying research assays and test kits for the Luminex-based Multiplexing platform and other immunoassays.

Serologicals paid $64.5 million in cash for the stock of Linco plus an additional $10.3 million for the land and buildings currently occupied by the unit.

Linco consists of two companies: Linco Research (LRI) and Linco Diagnostic Services (LDS). LRI is a life sciences provider of Multiplex, ELISA and RIA immunoassay products and technologies; LDS provides bioanalytical contract services supporting research and new pharmaceutical drug development.

Serologicals financed a portion of the purchase price for Linco from the proceeds of a new credit facility closed with the acquisition. The new credit facility includes a $50 million term loan and a $50 million revolving credit facility. JPMorgan Chase Bank is the administrative agent for the credit facility.

Serologicals itself is the target of a $1.4 billion merger with Millipore (Billerica, Massachusetts), first disclosed last month. That deal is expected to close by June 30.