Hologic, a developer, manufacturer and supplier of diagnostic products, medical imaging systems and surgical products, has completed its acquisition of Gen-Probe, a developer of nucleic acid tests, for approximately $3.8 billion. Gen-Probe is now a wholly-owned subsidiary of Hologic.

The transaction delivers a strong growth profile with attractive economics and is expected to be $0.20 accretive to Hologic's non-GAAP adjusted earnings per share in fiscal 2013 and significantly more accretive on a non-GAAP basis thereafter. Hologic also expects the transaction to accelerate growth rates. The combined company expects to realize approximately $75 million in cost synergies within three years following the close of the transaction. In addition, the combined company expects to have strong free cash flows, which will be used primarily to reduce debt with the expectation to return to pre-transaction leverage levels within three years.

"With Gen-Probe's suite of technologies, Hologic is now firmly established as a premier provider of diagnostic solutions,” said Rob Cascella, president and CEO of Hologic. “We are poised to leverage our established global infrastructure with an impressive new product pipeline, and to capitalize on the fast-growing molecular diagnostics market.”

Pursuant to the terms of the definitive merger agreement, Gen-Probe shareholders will receive $82.75 in cash for each share of Gen-Probe common stock.