Analogic Corp. [ALOG] says its pending $1.1 billion acquisition by the private equity firm Altaris Capital Partners has received approval by U.S. regulators.
The Federal Trade Commission provided early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, clearing one hurdle on the way to completion of the acquisition, which is still expected in mid-2018. Analogic’s board has approved the deal, which still needs shareholder approval.
Following a 10-month strategic review of alternatives, Analogic in early April announced that Altaris has agreed to acquire the company for $1.1 billion in cash.
Analogic develops and manufactures products for medical imaging, ultrasound, and security detection. The company’s computed tomography-based security detection systems are used to automatically detect explosives in checked bags at airports worldwide. The company is providing a variant of that technology for checkpoint applications at airports. Analogic also has capabilities in Rapid DNA for security purposes.
Altaris’ portfolio includes a range of healthcare companies but none in the security market.
“Given the increasingly competitive markets that we serve, we have been focused on the need to achieve greater scale in order to generate sustained profitable growth,” Bernard Bailey, chairman of Analogic’s board, said in early April when the agreement with Altaris was first announced.
Analogic said it had contacted 75 parties, domestically and internationally, as part of its strategic review.
Analogic’s financial adviser on the transaction is Citigroup [C].