On Monday, Hologic Inc ( HOLX ) agreed to acquire  Gynesonics, Inc. for approximately $350 million.

Gynesonics is a privately held medical device company that develops minimally invasive solutions for women’s health.

California-based Gynesonics develops and sells the Sonata System, a technology intended for diagnostic intrauterine imaging and transcervical treatment of certain symptomatic uterine fibroids, including those associated with heavy menstrual bleeding.

The Sonata System combines real-time intrauterine ultrasound guidance with targeted radiofrequency ablation in an incisionless procedure.

Also Read: Women’s Health-Focused Hologic Has Significant Capacity For Expansion Via M&A, Bullish Analyst Says.

William Blair writes that Sonata System’s approach differs from Hologic’s Acessa device/ procedure, which delivers imaging and radiofrequency heat through two small abdominal incisions.

Hologic’s MyoSure device/procedure is also a solution for fibroid removal, though this is done through tissue removal rather than tissue ablation. “We believe that while there could become overlap amongst these products, having different solutions in Hologic’s product suite should allow for greater adoption,” the analyst writes.

Given the target’s profile, William Blair analyst says it is unlikely that the deal will significantly impact Hologic’s objective of maintaining operating margins in the low-30% range.

Hologic ( HOLX ) is scheduled to report fiscal fourth-quarter earnings in early November.

As per data from Benzinga Pro, analysts expect adjusted EPS of $1.01 and revenues of $977.05 million.

The analyst adds that revenue and earnings forecasts and consensus estimates have decreased in the past month as the company signals a more cautious stance on non-core elements like net interest expense.

The company is well-positioned to achieve mid-single-digit organic revenue growth, with earnings growth projected to outpace that in the high-single- to low-double-digit percentage range over time.

Several factors could drive earnings within this expected range, and shares are trading at a fair multiple of just under 19 times 2025 earnings.

The analyst reiterates the Outperform rating.

Price Action: HOLX stock is up 1.54% at $81.04 at last check Monday.

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