The Role of M&A in Hologic's Growth Story: Are More Deals in Sight?

Hologic HOLX combines organic and inorganic innovation to drive future growth. The company’s M&A strategy targets high-growth, strategic areas within its franchises to strengthen its market position and build a resilient global growth portfolio. The emphasis is on tuck-in deals that leverage its existing strengths, boost revenue, and contribute to earnings growth over time.

In Diagnostics, Hologic’s 2021 acquisition of Biotheranostics marked its entry into the rapidly growing oncology market. That same year, its Breast Cancer Index (BCI) test became the only gene expression assay recognised by the National Comprehensive Cancer Network (“NCCN”) to predict the benefit of extended endocrine therapy for patients with early-stage HR-positive breast cancer. Although adoption and coverage of the BCI test is steadily growing, management believes they are still in the early stages of market penetration and expects Biotheranostics to be a key growth platform in the coming years.

In Breast Health, Hologic acquired UK-based Endomagnetics in 2024, bringing its wireless breast surgery localization and lymphatic tracing solutions to the breast surgery portfolio. Endomag contributed nearly $20 million of revenue in the fiscal 2025 third quarter and now supports Hologic’s organic growth.  

Earlier this year, the company completed the Gynesonics acquisition, which further bolstered its International Surgical growth prospects. Their flagship Sonata System expanded the minimally invasive suite of solutions for heavy periods and fibroids. With women often waiting an average of 3.5 years to get a fibroid treatment, mostly resulting in hysterectomy, Hologic sees an opportunity to get more women treated sooner with minimally invasive procedures.

Hologic’s fortress balance sheet underpins all these acquisitions. The company continues to seek similar deals like Endomags, Gynesonics, and Biotheranostics, while strengthening its capabilities over the past few years at both divisional and corporate levels. Management notes a strong pipeline of sizable deals but aims to remain patient, and take action from a position of strength.

M&A Updates From Hologic Competitors

Boston Scientific BSX had quite a few acquisitions this year, including SoniVie Ltd. (SoniVie), where it previously held a 10% equity stake. The buyout expanded BSX’s Interventional Cardiology Therapies offerings with ultrasound-based renal denervation therapy for the treatment of hypertension. Boston Scientific also acquired Intera Oncology, Inc. (Intera), which added a complementary therapy to the Interventional Oncology portfolio to treat both primary and metastatic forms of liver cancer.

Netherlands-based QIAGEN N.V. QGEN acquired Genoox in May, a provider of AI-powered software that enables clinical labs to scale and accelerate the processing of complex genetic tests. The acquisition adds Franklin, Genoox’s flagship cloud-based community platform, to the QIAGEN Digital Insights (QDI) portfolio, strengthening the company’s leadership in genetic interpretation for clinical genomics applications. Additionally, the acquisition also paves the way to integrate QIAGEN’s genomic content into the Franklin platform.

HOLX Stock Performance, Valuation and Estimates

Year to date, Hologic shares have fell 7.7% compared to the industry’s 8.5% fall.

Hologic is trading at a forward five-year price-to-sales of 3.49X, lower than the industry average of 4.07X. The stock carries a Value Score of B at present.

Image Source: Zacks Investment Research

Consensus estimates for Hologic’s fiscal 2025 earnings have edged up 0.5% in the past 90 days.

HOLX stock currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research