Natus Medical Inc. plans to purchase Alpine Biomed Holdings Corp. for $43.2 million.
Alpine Biomed, based in Fountain Valley, Calif., develops, manufactures and sells devices for the diagnosis of neurological disorders. Its products include advanced electromyography systems for the diagnoses of peripheral nervous system dysfunctions and devices for routine EEG and long-term epilepsy monitoring.
The firm has three neurology product divisions: diagnostic neurology devices under the Dantec brand, located in Copenhagen, Denmark; spike and seizure detection software applications and associated devices under the Stellate brand, located in Montreal, Canada; and neurology disposable products and accessories sold through the Alpine Biomed brand.
Natus acquired all outstanding shares of Alpine Biomed capital stock for $43.2 million in cash, exclusive of direct costs of the acquisition. Alpine reported revenue of approximately $35 million in the 12 months ended June 30 through the neurology product divisions acquired by Natus; however, due to cross selling of Alpine and Natus products, Natus believes that third-party revenue was approximately $33 million during the period. Natus believes the acquisition will be accretive to earnings in the fourth quarter of this year, exclusive of potential restructuring and other one-time charges.
“This acquisition affirms our position as the worldwide market leader in neurology,” said Jim Hawkins, president and CEO of Natus. “Approximately two-thirds of Alpine’s revenue is from outside the United States, and Alpine is the market leader in electromyography diagnostics, or EMG, in Europe with its well-established Keypoint product line.”
Said John Arnott, president and CEO of Alpine Biomed, said, “It is a testament to our success in building Alpine Biomed into a leading provider of specialty diagnostic devices that Natus acquired our neurodiagnostic business,” said John Arnott, president and CEO of Alpine Biomed. “Together with Water Street, we created and executed a two-year strategic growth plan that has greatly enhanced Alpine Biomed’s products and the markets we serve. Alpine’s family of neurodiagnostic devices will benefit greatly from Natus’ industry leadership position.”