Natus Medical Buys Sleep Apnea Diagnostic Co
The deal allows the medical device maker to expand its footprint outside the United States.
September 16, 2011
Medical device maker Natus Medical Inc. shelled out $16.1 million in cash for privately-held Embla Systems LLC in an effort to expand its sleep diagnostics portfolio.
Natus already owns and operates Stellate Systems Inc., a Montreal-based developer of computerized analysis software for epilepsy monitoring and sleep diagnostics. By acquiring Embla, the company expands its manufacturing capabilities with devices that are used in diagnosing the medical ailment sleep apnea
The deal will also give Natus an opportunity to expand its footprint outside the United States, as about 40% of Denver-based Embla's revenue comes from international markets. Its total annual revenue was roughly $30 million in 2010.
About 100 million people worldwide are believed to have sleep apnea, a disorder that causes abnormal breathing conditions during sleep. About 80% of them remain undiagnosed, Natus said in a prepared statement.
Natus Medical is Nasdaq listed under ticker symbol BABY, with a market capitalization hovering $309.4 million at the time of the announcement.
San Carlos, Calif.-based Natus said it expects the deal with Embla to add up to 8 cents per share to its 2012 adjusted earnings.
Inquiries to Natus were not returned by press time.
A spokeswoman for Embla, which runs over 35 offices worldwide, declined to comment by press time because some of the firm’s locations were still unaware of the acquisition agreement as of Friday morning.
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