Not yet, but a few weeks ago some of the talking heads on CNBC were speculating that HOLX was a take-over target (before the announcement of the blood screening sale). The way I see the sale of the blood business is it wasn't growing at the rate the company is and was therefore slowing the aggregate growth. Plus, they got almost 8x revenue, so they got a really nice chunk of change for selling it. They'll use that money to pay down debt, buy back stock, and make some acquisitions. I think you will see one or two acquisitions in the next 6 months. Interested to see what types of companies/niches they will go after.
Not sure about big cuts, but it is definitely a very weird acquisition. I know Steve M. is a smart guy, but I'm definitely scratching my head over this one right now. More than anything, I am concerned about the culture integration and what it may mean for the future of the other divisions from that perspective.
Steve's smart and somehow has convinced wall street we are going to keep growing everywhere. Good thing he sold blood and bought this new company. It will keep up the smoke and mirrors.
Highly doubt any cuts, as the big $ we got in our blood screening division has played a major role for the Cynosure acquisition. It's going to be treated as another division, which is like all others is pretty well separated with little visibility between them. The acquisition is an incredible move to gain a stronger hold on on the office setting, which I believe is the one area of improvement for us due to the more aggressive pricing seen within that setting. We just need more visibility to the other divisions to really take advantage of it all and wrap it all into one leveraged contract.
