Inverness Medical Makes Boldest Bet Yet
In its biggest purchase so far, Inverness will pay $900 million in cash and stock for the struggling disease-management company. It will assume $280 million in debt as well, pushing the total value of the deal toward $1.3 billion.
Inverness specializes in offering key medical services to patients in their homes. The company expects its ambitious buyout of Matria, which has strengths in women's health, oncology and disease management, to further accelerate its acquisition-driven growth.
Inverness is paying $6.50 in cash, plus $32.50 in premium-priced convertible stock, for each Matria share. Inverness' stock tumbled 8.3% to $47.92 on the news.Meanwhile, shares of Matria climbed 5.9% to $32.44. While the stock now sits near its 52-week high, it still fetches less than the $45 it commanded at its peak two years ago. Back then, Matria's stock had been soaring on a big acquisition meant to transform the company into a leader in the booming disease-management space. But Matria has suffered numerous setbacks, repeatedly missing Wall Street targets, since that time. Less than two weeks ago, Matria announced it was
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