San Carlos, Calif. USA. Natus Medical Incorporated (Nasdaq:BABY)
has announced that it is to acquire privately held French EEG
manufacturer Deltamed SA, headquartered in Paris and its wholly
owned subsidiary, IT-Med, located near Frankfurt, Germany. The
transaction is expected to close mid September.
Deltamed is a leading European manufacturer of medical devices used
in the detection of neurological dysfunction, epilepsy, and sleep
disorders through the use of electroencephalograph (EEG) and
polysomnography (PSG) technologies. The acquisition adds to Natus'
international growth opportunities by broadening its product offerings
and leveraging its distribution organization. Natus believes the
acquisition will be accretive to earnings in the fourth quarter of 2006.
Natus has agreed to acquire Deltamed for EUR 3.1 million or
approximately U.S. $4.0 million. Under terms of the acquisition, Natus
will retain Deltamed's operations as well as its direct sales channels
in France and Germany. Deltamed founder Robert LeGuen will continue as
Managing Director of the organization. Deltamed currently has 37
employees, recorded revenue of EUR 4.3 million in calendar 2005 or
approximately $5.3 million, and has sold more than 2,000 EEG & PSG
devices since its inception.
"We believe Deltamed's complementary products and distribution will
fill a need in our EEG & PSG product portfolio internationally and give
Natus a stronger European presence," said Jim Hawkins, President and
Chief Executive Officer of Natus. "Deltamed has successfully developed a
direct sales force in France and Germany, where they are a market leader
in EEG sales and are recognized for producing high-quality products. We
believe Natus can leverage this position by bringing Deltamed products
into new markets through our established international distribution
channel."
"We are excited to be joining Natus, a company that shares our
passion for quality, innovation and market leadership," commented Mr.
LeGuen.
Any one-time charges associated with the acquisition were not
included in the financial guidance previously provided by the Company.