A Medical Device Daily

NxStage Medical (Lawrence, Massachusetts), maker of the NxStage System One portable kidney dialysis machine, said it has completed its acquisition of Medisystems (Seattle) for 6.5 million share of NxStage stock.

The deal to acquire Medisystems, a private developer of devices for use in dialysis and blood-related treatments, was first disclosed in June (Medical Device Daily, June 6, 2007). The company said at the time that the transaction was valued at $78.7 million, based on a stock price of $12.11.

“I believe that we now have the components in place to realize the significant opportunities that we see in each segment of the dialysis market – hospital, in-center and home-based therapies. Our acquisition of Medisystems establishes us as a vertically integrated manufacturer and distributor of innovative dialysis products, with greatly expanded scale and capabilities,” said Jeffrey Burbank, president/CEO of NxStage. “I am more confident than ever in our ability to continue to lead and grow the home hemodialysis market, as we begin a new era for NxStage.”

Medisystems makes disposables for in-center dialysis therapy. For the first six months of 2007, Medisystems recorded $32 million in revenues, including $3.7 million in sales to NxStage.

NxStage develops systems for the treatment of end-stage renal disease and acute kidney failure.

In other dealmaking news:

• PerkinElmer (Waltham, Massachusetts) said it plans to acquire ViaCell (Cambridge, Massachusetts), a biotech company specializing in the collection and preservation of umbilical cord blood stem cells.

PerkinElmer will begin a cash tender offer to buy all of the outstanding shares of ViaCell for $7.25 a share, for an aggregate purchase price of about $300 million, or $260 million net of cash. The transaction is expected to close in 4Q07.

PerkinElmer provides products and services for the life and analytical sciences, optoelectronics and fluid sciences.

• Teleflex (Limerick, Pennsylvania) reported completing its $2 billion acquisition of Arrow International, a provider of catheter-based access and therapeutic products for critical and cardiac care.

The deal was first disclosed in July (MDD, July 24, 2007).

Arrow shareholders will receive a cash payment of $45.50 for each outstanding share of Arrow common stock.

• Respironics (Murrysville, Pennsylvania) said it has acquired 100% of the outstanding shares of Apollo Light Systems (Apollo Health; American Fork, Utah), a private manufacturer of light therapy systems for melatonin suppression and circadian rhythm sleep disorders.

The base cash purchase price is $6.5 million, with provisions for additional payments to be made based on Apollo’s operating performance over the next year. Total potential earn out payments are less than the base purchase price, the company said. Apollo has annual revenues of about $5 million.

Respironics said the acquisition would not have a material impact on revenues or earnings and the company will not be changing its financial outlook or guidance based on the deal.

Apollo’s product line includes the briteLite Series Light Boxes, which use Britewave technology to create specific wavelengths that produce a circadian response while eliminating UV hazards, and the goLite series handheld light therapy devices, which feature Bluewave technology, a narrow range of blue light found in natural sunlight.

Respironics develops products and programs for the global sleep and respiratory markets.

• Caxton-Iseman Capital (New York), a private investment firm, reported that it has acquired Conney Safety Products (Madison, Wisconsin), a marketer of personal protective equipment, safety equipment, first aid supplies, and various other safety products, from K+K America, for about $48 million.

GMAC Commercial Finance and BlackRock Kelso Capital provided financing for the transaction.

• Nuance Communications (Burlington, Massachusetts), a supplier of speech and imaging solutions, said it has acquired Commissure (New York), an imaging software company that provides speech-enabled radiology workflow optimization and data analysis solutions.

Financial details of the transaction were not disclosed.

The deal allows Nuance to broaden the capabilities of its Dictaphone solutions for the medical imaging industry, to extend the company’s domain expertise in the radiology market and accelerate revenue growth through software as a service offering, the company said.

• Iron Mountain (Boston) said it has acquired RMS Services — USA (Southfield, Michigan), a $27 million records management company and a provider of outsourced file room solutions for hospitals.

Terms of the deal were not disclosed.

Iron Mountain says it offers comprehensive records management and data protection solutions.

• Air Methods (Denver), an air medical transportation company, said is has acquired 100% of the outstanding common stock of FSS Airholdings (West Mifflin, Pennsylvania), parent company of CJ Systems Aviation Group (Pittsburgh) for $25 million.

The deal was first disclosed in August (MDD, Aug. 3, 2007).

The company said the deal was primarily financed through a new five-year, $50 million term loan and a new five-year, $50 million line of credit with a commercial bank group. The existing Air Methods term loan and CJ indebtedness were paid off with the proceeds from these new lending facilities as well, Air Methods said.