Dialysis-Machine Maker to Acquire Medisystems

Seattle-based Medisystems, which makes medical devices used in dialysis and blood-related treatments, will be acquired for $78.7 million in stock by one of its customers.

NxStage Medical, a maker of a portable dialysis machine, will buy the company from Medisystems President and CEO David Utterberg for 6.5 million NxStage common shares, the companies said in a statement Monday.

Utterberg already owned 6.7 percent of NxStage. The acquisition will boost his stake to about 23 percent, making him the Lawrence, Mass.-based company’s top shareholder.

Medisystems’ products include the cartridge used in the NxStage System One portable machine. The company had $65.5 million in 2006 revenue, including $4.5 million from NxStage. It has manufacturing facilities in Mexico and Italy, as well as a customer-service facility in Denver, according to the companies’ statement.

Utterberg was traveling Monday and unavailable for comment, an employee at Medisystems said.

NxStage said the acquisition will immediately bring it closer to profitability. “The financial and operational benefits delivered by this acquisition will significantly advance” our prospects, NxStage President and CEO Jeffrey Burbank said.

SOURCE:  THE SEATTLE TIMES COMPANY