The company has developed a template and a core architecture that allows it to assimilate new acquisitions within two to three months.
Intelligent Standards for Acquisitions
Technology standards enable successful acquisition strategy
Hologic Inc. is on a mission. Well, two missions, actually.
The first and by far the dominant mission is to become the leading developer, manufacturer, and supplier of premium diagnostic products, medical imaging systems, and surgical products dedicated to serving the healthcare needs of women throughout the world. The second, enabling mission is to grow through acquisition.
For 10 years, Hologic has averaged about an acquisition per year, growing into a company with 4,000 employees, operations in North America, Europe, Central America, Australia, and Asia, and annual sales of $1.68 billion.
The largest of those acquisitions was Cytyc, a maker of diagnostic and surgical products for women’s health; Hologic acquired Cytyc in 2007 for $6.2 billion. Most recently, the company bought InterLace Medical Inc. for $125 million.
In the highly competitive medical equipment business, however, it’s important for Hologic to make all of its acquisitions contribute to the overall mission—and the bottom line—as quickly as possible. To achieve that, the company has developed a template and a core technology architecture that allows it to assimilate new acquisitions within two to three months. Following Hologic’s January acquisition of InterLace, for example, it had fully integrated the company by mid-March.
Key to Hologic’s rapid assimilation approach is an IT architecture that emphasizes strategic relationships with a few key technology partners such as Oracle, Microsoft, and AT&T. Hologic has standardized on ERP, CRM, product lifecycle management, business intelligence, and enterprise performance management applications from Oracle. And the company has selected AT&T as its provider of the network services that tie together Hologic’s worldwide operations. Hologic, for example, uses AT&T’s BusinessDirect portal, which gives Hologic users a single log-in for accessing voice, data, and wireless tools.
Hologic also applies a repeatable methodology for evaluating the existing technology infrastructures of acquired companies and what will be involved in integrating them into Hologic’s platform. The approach, based on experience gained from earlier acquisitions, gives the company detailed information about what the average per-use cost of migrating new acquisitions will be.
Says Dave Rudzinsky, Hologic’s CIO and senior vice president of information services, “Our overall strategy is to continue to leverage our strong distribution in women’s health by adding our own innovative new products and by remaining acquisitive.”