Luminex Corp LMNX is set to acquire IL-based biotech company Nanosphere NSPH for almost $58 million ($1.35 per share) in cash. The company will also pay off Nanosphere’s $25 million in debts, which brings the total value of the transaction at $83 million.Nanosphere is a well known developer of molecular diagnostic tools designed to enable rapid and accurate detection of respiratory, gastroenteric and bloodstream infections. The company has a strong clientele (more than 240 customers) and its Verigene technology is complementary to Luminex’s infectious disease portfolio. Per Luminex, post-acquisition, it will be the only company to offer automated molecular platforms for both syndromic and targeted molecular diagnostic testing (Verigene and ARIES).Meanwhile, Luminex reported impressive first-quarter 2016 results, with earnings growing 36.5% on a year-over-year basis driven by strong top-line growth (up 9.1%) and operating margin expansion (up 320 basis points).Most significantly, Assay revenues increased 6.3% to $27 million, reflecting the successful execution of the company’s molecular diagnostic strategy. Infectious disease assay sales comprised approximately 72% of the total assay sales in the quarter, with genetic testing assays representing 28%.Molecular diagnostic business generated approximately $28 million in revenues driven by 20% growth in Luminex’s infectious disease test portfolio.In this regard, the addition of Nanosphere will contribute revenues in the range of $13--$16 million to this business line, if the deal completes by Jul 1. Luminex noted that the transaction will be accretive to its adjusted earnings by the end of full-year 2017.Notably, management at Luminex expects assay revenue growth in the mid single-digits range in 2016. Luminex continues to expect a couple of million dollar contribution from ARIES in 2016.Based on these, Luminex raised its full-year 2016 guidance. The company now expects full-year 2016 revenues in the range of $247--$255 million, up from the previous range of $245–$255 million. Second-quarter 2016 revenues are expected between $60 million and $62 million.Zacks Rank & Key PicksCurrently, Luminex carries a Zacks Rank #3 (Hold).Better-ranked stocks in the medical space are Edwards Lifesciences EW and IRadimed Corporation IRMD. Both the stocks sport a Zacks Rank #1 (Strong Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report LUMINEX CORP (LMNX): Free Stock Analysis Report IRADIMED CORP (IRMD): Free Stock Analysis Report EDWARDS LIFESCI (EW): Free Stock Analysis Report NANOSPHERE INC (NSPH): Free Stock Analysis Report To read this article on Zacks.com click here.