A Medical Device Daily

Hearing aid firm Sonova Holding (St fa, Switzerland) said it is buying cochlear implant maker Advanced Bionics (AB; Valencia, California) for $489 million in cash. The acquisition represents a strategic expansion into the area of cochlear implants for the Sonova Group, enabling the group to offer a comprehensive range of solutions for hearing loss.

Sonova expects the transaction, which is subject to regulatory approval, to be completed within three months.

"Sonova will offer the most comprehensive and innovative product and service portfolio covering any customer need for most types of hearing problems," Valentin Chapero, Sonova's CEO, said in a statement.

Privately-held Advanced Bionics was founded in 1993. Its majority shareholder is the biotech investor and inventor Alfred Mann.

The company, which has 660 employees and sales in more than 30 countries, has an 18% share of the global market in cochlear implants. These electronic devices are surgically implanted inside the ear to stimulate the auditory nerves, allowing deaf people to hear sounds.

Sonova spokesman Holger Schimanke said there was little overlap between Sonova and Advanced Bionics, and consequently there are no plans to restructure the business.

"Advanced Bionics will continue to operate as an independent unit within the Sonova Group," Schimanke told the Associated Press. "We aren't talking about any kind of job cuts, definitely not."

He said Advanced Bionics had developed "a great American technology that many people consider to be world leading, but it hasn't really taken off."

The Sonova Group brings together Advanced Bionics and Phonak (Switzerland), a provider of micro hearing systems. Both pioneers in their field, AB and Phonak have 75 years of combined experience in engineering innovative hearing solutions.

Like Phonak, AB will remain an independent division within the Sonova Group, but will share the elements that have been driving the success of AB's new parent company over the last decade: global sales coverage, outstanding customer service, a global supply chain, and a dedication to innovation.

In addition, Phonak's proven capabilities in the field of micro auditory devices will set the stage for AB to develop smaller, higher performing sound processors for patients across the globe. Combined, Sonova, Phonak and Advanced Bionics will provide the most comprehensive product line in the hearing healthcare industry, offering a full range of hearing options for those with mild-to-profound hearing loss.

In other dealmaking activity:

• Emergency Medical Services (Greenwood Village, Colorado) reported that it has significantly expanded its anesthesiology services via definitive agreements to acquire Pinnacle Consultants Mid Atlantic (Warren, Pennsylvania) and the management services company of Pinnacle Anesthesia Consultants.

Pinnacle Anesthesia Consultants and Pinnacle Consultants Mid Atlantic are anesthesiology services providers in the U.S. consisting of more than 700 clinicians serving in excess of 75 hospitals and ambulatory surgery centers and have patient revenues in excess of $300 million.

Upon closing of the transactions, the MSO and Pinnacle Consultants Mid Atlantic will become part of AnesthesiaCare, EMSC's anesthesiology services operation, and AnesthesiaCare will be the exclusive provider of management services to Pinnacle Anesthesia Consultants. These transactions are expected to contribute nearly $100 million in new EMSC net revenue from management fees and patient billings.

• Clinipace (Research Triangle, North Carolina) a global technology-driven clinical research organization (CRO), reported that on October 26, 2009 the company closed its acquisition of World Wide Clinical Research (WWCR; Overland Park, Kansas), a CRO specializing in the management of clinical studies for biotechnology and pharmaceutical companies.

With the acquisition, Clinipace has changed its name to Clinipace Worldwide. Combined, the companies have managed over 70 contract research projects conducted globally at almost 3,000 sites with 100,000 patients.

With specific expertise in oncology, among other therapeutic areas, the company will offer fully-integrated technology-based clinical research solutions and services to growth-oriented and mid-tier biopharmaceutical and medical device firms.

These services will now be augmented by Clinipace's focus on technology-driven clinical research solutions to provide clients with full-service, global research services that result in greater trial visibility, more project control, and lower costs.

• Roper Industries (Sarasota, Florida) reported that it has signed a definitive agreement to acquire Verathon (Bothell, Washington) a leading provider of proprietary medical devices. The Verathon board has approved the transaction and the closing is subject to customary regulatory approvals and closing conditions, including shareholder approval. The parties expect the closing to be completed in early December.

Verathon's noninvasive BladderScan instrument is a standard of care for portable ultrasound bladder volume measurement.

The company's GlideScope Video Laryngoscope improves intubation success for emergency departments, operating rooms and rapid response applications such as EMS and military applications. With a direct sales force of over 140 people, Verathon provides global coverage to hospitals, primary care physicians, acute care and military end markets.

Roper also reported it has acquired the assets of United Toll Services (Montogomery, Alabama). UTS provides software and in-lane hardware systems for toll and traffic solutions. With unique and patented technology, remote monitoring capabilities, new lane and camera configurations and system integration capabilities, UTS provides expanded hardware and software solutions for the toll industry.

The existing leadership teams of both businesses are expected to continue in place once the acquisitions are completed. The total investment for these transactions will be nearly $356 million. The company expects these two transactions will add more than $140 million to 2010 revenue with at least $38 million of EBITDA.