A Medical Device Daily
PainCare Holdings (Orlando, Florida), a provider of high-tech pain relief services, reported the acquisition of 60% of the capital stock of Amphora (Fort Collins, Colorado), an intraoperative monitoring (IOM) company serving medical institutions and surgeons in Colorado, Wyoming, Arizona and Nebraska.
PainCare will pay Amphora s members up to $15 million for the 60% stake; $6.5 million was paid at closing in equal cash and stock, with the balance paid in installments over three of four years.
Amphora uses Internet-based connectivity tools and technologies to remotely provide advanced technical monitoring and interpretation services in the operating room, in real time. The IOM Team is comprised of 12 field technicians and two monitoring physicians who administer seven to eight surgical procedures daily, on average.
During surgery, IOM is used to assess the integrity of a patient s nervous system, identify neural structures in the operative field to offer protection of neural tissues and organs during the surgery. By measuring spontaneous or evoked electrical signals produced by the nervous system or attached muscle groups during surgery, impending injury or nerve irritation can be avoided.
Amphora says that IOM has been shown to be effective in reducing operative neurological complications in several types of surgeries, best documented in spinal surgeries for protection of the spinal cord. IOM also has shown to be effective in ear, nose and throat, craniofacial, orthopedic, and cardio- and cerebro-vascular surgeries, it said.
Randy Lubinsky, CEO of PainCare, said, Amphora is one of only a few IOM service providers in the U.S. using high-tech, web-based connectivity to provide remote, real-time monitoring and interpretation services to hospitals and surgeons.
Based on historical financial performance, Amphora is expected to generate about $7 million in revenue and $5 million in operating income annually.
In other dealmaking news:
• Decision Resources (Waltham, Massachusetts), a research/advisory firm focused on pharmaceutical and healthcare industry analysis, reported acquiring Millennium Research Group (Toronto), a med-tech market intelligence provider. Terms were not disclosed.
Bob Bahador and Ash Vahman, co-founders of Millennium, will be co-presidents of the Decision Resources subsidiary.
Peter Hoenigsberg, CEO of Decision Resources, said, As the leader in drug market coverage, we realized that the intersection between drugs and devices was becoming more pronounced. He termed Millennium the perfect organization to add to our family.
• Entities created by Formation Capital Health Care received $172 million in loans from CapitalSource Finance (Chevy Chase, Maryland) to acquire 26 long-term care facilities and an institutional pharmacy owned and operated by Laurel Health Care Management. CapitalSource said it also will provide a $12.5 million revolving credit facility to a Laurel entity, LHCC Properties, to lease the 21 skilled nursing facilities, four assisted living facilities, one independent living facility and pharmacy.
Formation Capital and its partners have acquired more than $800 million in long-term care properties, receiving financing from CapitalSource on several of these transactions, including its acquisition of nursing homes formerly owned by Centennial HealthCare.
The transaction featured senior and mezzanine term loans for the senior housing facilities and an enterprise term loan and revolving credit facility for Laurel Health Care s institutional pharmacy.
In addition, Formation Capital and its related entities made an investment of about $30 million to acquire the portfolio, totaling more than 2,800 beds/units in Indiana, Michigan, North Carolina and Virginia.