A Medical Device Daily
Omnicell (Mountain View, California) reported it has entered into a definitive agreement to acquire Rioux Vision (Elgin, South Carolina) in an all cash transaction valued at about $26 million.
Privately held Rioux Vision makes mobile cart technologies which are fully integrated into the bedside point-of-care environment, enabling nurses to have easy access to patient records and electronically integrate the process of record keeping into the patient care process.
“We are excited to add mobile cart technology to our extensive line of medication-use systems. Mobile technology will enable clinicians to increase their productivity and the accuracy of their record keeping, which further leads to improved patient care,” said Randall Lipps, chairman, president/CEO, Omnicell.
Omnicell will acquire 100% of the outstanding shares of Rioux Vision, which will become a wholly-owned subsidiary of Omnicell. The transaction is expected to generate additional revenue growth of about 5%-6% in 2008. During 2008, as Omnicell incurs the expenses of integrating the Rioux Vision product line with the Omnicell suite of medication management software, Omnicell expects the results of the transaction to be dilutive to earnings by about 5 cents per share.
In 2009, after the Rioux Vision product line is fully integrated with the Omnicell line, Omnicell expects the transaction to become accretive. Closing of the transaction is expected to occur in the current quarter ending December 31, 2007, subject to the satisfaction of customary closing conditions.
Natus Medical (San Carlos, California) said it has completed its acquisition of Excel-Tech (Oakville, Ontario, Canada).
Natus completed the purchase by way of a statutory plan of arrangement in Canada under which Natus acquired all of the outstanding common shares of Xltek for C$3.25 a share in cash, valued at around $63.5 million.
Jim Hawkins, president/CEO of Natus, said, “We are very pleased to have acquired Xltek, as it affirms our position as a market leader in neurology and brings Natus one step closer to achieving our stated goal of growing revenue to a $250 million annual run-rate by the end of 2008.”
“This acquisition adds to our growth opportunities by broadening our product offerings in neurology, including Xltek’s products for the diagnosis of peripheral nervous system dysfunction,” Hawkins said. “Xltek’s full line of products for the neurology clinician expands our current product offerings with products that include a high-end long-term EEG patient monitoring system for the diagnosis of epilepsy, electromyography systems, or EMG systems, used in the diagnosis of neuropathies and myopathies, and intra-operative monitoring systems, or IOM systems, used during surgical procedures in the operating room.”
Natus said the acquisition will be immediately accretive to earnings, excluding associated one-time charges.
In other dealmaking activity:
• Ohio Medical Corporation (Gurnee, Illinois), a manufacturer of medical air and vacuum products, reported completing the purchase of Amvex (Ontario, Canada), a manufacturer of Medical Suction and Oxygen Therapy products. Financial terms were not disclosed.
Dave Finney president/CEO of Ohio Medical, said the acquisition “enables Ohio Medical Corporation to integrate a variety of innovative technologies from both companies that will provide customers with a comprehensive line of quality products. The complementary skills and expertise of both of these companies will allow us to better meet the ever changing needs of our customers.”
Dave Stinson, president of Amvex, noted the strength of Ohio Medical’s legacy products and reputation in the healthcare market, combined with Amvex’s new patented technologies ... By uniting the Amvex digital technology with Ohio Medical’s latest Push-To-Set safe suctioning technology, we will be setting a new standard in suction. Clinicians will no longer have to choose between one innovation and another – soon they will be able to get both in one offering.” according to Stinson.
• Harden Healthcare (Austin, Texas) has acquired Girling Health Care (also Austin). Financial details were not disclosed.
Girling was founded by Bob and Bettie Girling and has home health operations in Florida, Illinois, New York, Oklahoma, Tennessee and Texas.
Harden consists of several companies that offer a post-acute continuum-of-care services, primarily for seniors, including skilled nursing, assisted living, rehabilitation, hospice and home healthcare.
Bettie Girling, president/CEO of Girling, said. “Our two companies share very similar values, and we are confident that our clients will continue to receive the same high level of care that they have come to expect from Girling.”
Harden acquired two home health companies, Auxi Health and American HomeCare, earlier this year. With the addition of Girling, all home health operations will operate under the Girling Health Care name.
Lew Little, CEO of Harden Healthcare, will also serve as CEO of Girling Health Care.