Zomedica Acquires PulseVet for $70.9M

Zomedica Corp., a veterinary health company creating point-of-care diagnostic and therapeutic products for companion animals, acquired the Pulse Veterinary Technologies businesses for $70.9 million in an all-cash, stock transaction.
 
Pulse Veterinary Technologies is a developer of electro-hydraulic shock wave technology for the treatment of a wide variety of conditions in veterinary patients. The high-energy sound waves stimulate cells and release healing growth factors in the body that reduce inflammation, increase blood flow, and accelerate bone and soft tissue development. PulseVet’s technology is used in conditions including tendon and ligament healing, bone healing, osteoarthritis, chronic pain, and wound healing.
 
The PulseVet business employs a razor-razorblade economic model in which a customer buys a shock wave generator as capital equipment, along with replaceable therapy hand pieces called “Trodes.” Each Trode has an expected life of forty to fifty therapy sessions. Once a Trode completes its useful life, the customer replaces it with a refurbished Trode.
 
PulseVet is currently the market leader in the equine space with 1,500 systems actively in use globally. It recently launched a new handpiece, the X-Trode, which has an energy output intended for maximum efficacy while no longer requiring patient sedation.
 
Robert Cohen, Chief Executive Officer of Zomedica, commented, “As previously indicated following our fundraising efforts and the establishment of a business development capability, it has been our goal to complement our TRUFORMA product platform, and to accelerate the growth of Zomedica overall, by strategically investing to expand our product offerings, technologies, and product development efforts. This selective process, focused on expanding Zomedica’s capability to be a valued partner to the veterinary clinic by bringing novel and valuable offerings that enhance both animal and veterinary practice health, has led us to PulseVet.”
 
“During our extensive due diligence process, we consistently were impressed by both the strength of the PulseVet team led by Adrian Lock and the solid business that they have built. We believe that this acquisition will enable us to enhance both of our organizations by what we learn from each other and add to the combined effort. Among other things, we expect that our existing sales organization will add PulseVet’s small animal products to its product portfolio to help accelerate the growth of the X-Trode. On behalf of everyone at Zomedica, I would like to extend a hearty welcome to the entire PulseVet team.”
 
PulseVet CEO, Adrian Lock, added, “We are extremely pleased to be joining the Zomedica team and particularly excited to continue building on the early momentum of our new X-Trode handpiece to accelerate the utilization of shock wave therapy in the companion animal market.”
 
Stifel acted as exclusive financial advisor and Maslon LLP acted as legal advisor to Zomedica in this transaction.