Inverness to acquire Matria for $1.18 billion

WALTHAM, Mass. Inverness Medical Innovations and Matria Healthcare Monday announced that Inverness will acquire all outstanding shares of common stock of Matria for $39.00 per share. The total transaction consideration will be approximately $1.18 billion, consisting of approximately $900 million to acquire the Matria shares of common stock and assumption of approximately $280 million of Matria’s indebtedness outstanding.

Through its Health Enhancement and Women’s and Children’s Health divisions, Matria, headquartered in Marietta, Ga.,  provides services to more than 1,000 employers and managed care organizations. Inverness intends to consolidate Matria with its recently acquired Alere and Paradigm businesses to form a combined organization that focuses on the large and rapidly growing health management market opportunity. This acquisition “furthers Inverness’ approach of bringing its proprietary diagnostic products into the home,” the companies said in a press release.

“We view the acquisition of Matria as an important part of our overall health management growth strategy. In addition to Matria’s substantial position in the disease management, productivity enhancement and informatics markets, Matria brings specialized expertise in women’s health which will complement our rapid diagnostics in that area,” Ron Zwanziger, chief executive officer of Inverness, said. “Additionally, Matria’s oncology services are the market leader in value-added services for oncology and fit with our Paradigm acquisition and with Paradigm’s complex case management capability in oncology and neonatal intensive care. Coupled with Alere’s market leadership position in cardiac disease, the addition of Matria provides Inverness with health and disease management market leading positions in women’s health, oncology and cardiology, three critical areas of strategic focus for Inverness.”

“Teaming up with Inverness represents a significant opportunity for Matria and our patients, clients and partners,” Pete Petit, chairman and chief executive officer of Matria, stated. “We have some very unique opportunities to dramatically improve the interventions with patients through the expanded products and services Matria can offer as a result of this combination. We believe that Matria’s leadership in disease management and wellness supported by technology and informatics assets will facilitate many of the Inverness diagnostics initiatives. This combination should significantly improve the health management of our patients.”