Bangalore Buyer for Bothell medical device maker
Cardiac Science of Bothell, Washington has agreed to be acquired for $2.30 per share by a medical equipment company based in Bangalore, India. The all-cash deal represents a 10 percent premium to Monday’s closing price of Cardiac Science shares, the companies said Tuesday.
Opto Circuits (India) Limited of Bangalore, which will pay $54.6 million for Cardiac Science, is a developer and marketer of healthcare equipment including pulse oximeters, patient monitoring systems, sensors, digital thermometers, anesthesia and respiratory care equipment, and stents. It reported revenues of $243 million in the latest fiscal year, and sells primarily in the US, Europe and South East Asia. Opto Circuits will fund the purchase through cash on hand and lines of credit.
Opto Circuits Chairman and Managing Director Vinod Ramnani said the deal helps his company venture into the noninvasive diagnostic monitoring and “high-growth” automated external-defibrillation markets. “This transaction is expected to open many new global markets for Cardiac Science’s products and will greatly enhance Opto Circuits’ product offering and presence in the United States,” Ramnani asserted.
While companies from India are getting ambitious about M&A in the West, they continue to be value-seekers as we see in this deal to buy a distressed medical device company. Earlier this year, the company agreed to replace 24,000 AEDs for U.S. medical facilities and emergency services under a revised recall plan the company has negotiated with the U.S. Food and Drug Administration. So don’t expect a wave of such buyouts in the next quarter.