Acquisition by GSI Group Beefs Up Medical Supplies Business
Posted on January 16, 2013 @ 09:49 am
Bedford, Mass.-based GSI Group Inc., a supplier of laser-based solutions, precision motion and optical technologies, has acquired NDS Surgical Imaging, a San Jose, Calif.-based manufacturer of surgical and radiology displays and related peripherals, for $82.5 million in cash.
“The acquisition of NDS Surgical Imaging provides GSI with market-leading positions in the medical and surgical arenas, based on highly engineered technologies supplied into demanding applications,” said John Roush, CEO of GSI. “The addition of NDS significantly expands our existing medical OEM sales channels and leverages our expertise in color measurement. This acquisition enhances our relevancy to major medical OEM customers, and opens up additional organic growth and acquisition opportunities, particularly within the surgical arena.”
NDS’s primary technology consists of high-resolution, flat-panel displays, assembled into medical-grade enclosures, with proprietary customer specific color correction software algorithms. The company provides surgical visualization products, including displays, wireless imaging peripherals, and informatics and connectivity solutions to the medical device industry. NDS has U.S. Food and Drug Administration clearance for the use of its LCDs for mammography.
“NDS … [has] … significant exposure to the minimally invasive surgical and diagnostics markets in both developed and developing countries,” said Roush. “With nearly 40 percent of GSI’s pro forma revenue generated from the medical market, the acquisition is a significant step for us in achieving our strategic goals.”
The total purchase price of $82.5 million is financed using approximately $25 million of cash on-hand with the remaining funds from financing arranged by GSI. The transaction is earnings accretive and is expected to add more than $80 million in revenue and nearly $12 million of adjusted earnings to GSI’s financial results in 2013.
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