Cherrystone portfolio company bought for $140 million

BOSTON HEART DIAGNOSTICS, a bio-analytical testing and genomic service founded in 2007, and which Cherrystone Angel Group supported in 2009 with an investment, has been sold for $140 million to Eurofins Scientific.
BOSTON HEART DIAGNOSTICS, a bio-analytical testing and genomic service founded in 2007, and which Cherrystone Angel Group supported in 2009 with an investment, has been sold for $140 million to Eurofins Scientific.

(Updated, 5:14 p.m.)
BOSTON – A Cherrystone Angel Group portfolio business has entered into an acquisition agreement worth $140 million with a European buyer specializing in bio-analytical testing and genomic services.
Boston Heart Diagnostics, a heart health management company, will be purchased by Eurofins Scientific, pending post-closing adjustments. The sellers’ earn-out payments are expected to be more than $60 million, “upon achievement of certain milestones,” according to a press release.
“We couldn’t be more excited to become of the Eurofin family,” said Boston Heart CEO Susan Hertzberg. “And, as a wholly owned subsidiary, Boston Heart will continue to provide our breakthrough testing and services to clinicians and patients under the Boston Heart name and in the same manner our customers have come to expect.”
Boston Heart specializes in managing an advanced diagnostics platform that helps “identify and reduce the risk of cardiovascular disease, diabetes and other chronic conditions,” according to the release. Cherrystone initially invested in Boston Heart in 2009 when it was still in the early stages of development. Bain Capital Ventures is also an investor.
Today, Boston Heart – based in Framingham, Mass. – has processed more than 450,000 requisitions from nearly 3,500 ordering clinicians across the country. The company is projected to achieve more than $95 million in 2014 revenue, representing a compound annual growth rate of more than 75 percent since 2011, according to the release.
“It has been a privilege to watch Boston Heart Diagnostics grow from a small startup to its current state, and we are happy to hear the nearly 350 employees will be retained,” said Cherrystone Executive Director Jennifer Schwall, in a statement. “Our investors are pleased with the return from this exit and look forward to reinvesting the money into more investment opportunities.”

Jennifer Schwall, Cherrystone Angel executive director, said that while the group does not share the size of its investment or its return publicly, “our investors are happy with the return they received.”

The deal is expected to be finalized in the next 60 days, subject to regulations and conditions. The company’s single-site laboratory is expected to remain in Framingham, so there are no foreseeable consolidation, or construction costs, according to the release.

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