Natus Buys Danish Maker of Hearing Aids, as Medical Device M&A Heats Up

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Natus Medical Inc. (Nasdaq: BABY) has agreed to purchase the Otometrics division from GN Store Nord A/S (CPH: GN), a Danish maker of hearing instruments and audio diagnostics equipment, for $145 million in cash. The deal is expected to close by year end 2016.

GN’s Taastrup, Denmark-based Otometrics business line provides computer-based audiological medical equipment and sound rooms to hearing professionals throughout more than 86 countries. Otometrics’ product line includes: the ICS Impulse, which is a vestibular tool that helps professionals assess and treat patients with disorders in the inner ear; the Madsen Capella, a hearing assessment attachment that has the ability generate ear data from frequencies; and the Aurical Otocam 300, a video otoscope that gives medical professionals access to images and video footage of their hearing care assessment. Otometrics has annual revenue of approximately $110 million.

Pleasanton, California-based Natus, also a hearing diagnostics tool maker, manufactures software and monitoring services for newborn care, neurology and sleep patients. Natus’ hearing diagnostics division includes products such as the Bio-logic Navigator Pro, a pediatric care assessment tool that identify hearing impairments for newborns; the Navigator Pro Scout Sport, a software product that complements other hearing products to interpret frequencies and data analysis; and the Algo 5 Newborn, a hearing screener provides an analysis of the hearing pathway from the ear to the brainstem. Natus CEO Jim Hawkins says Natus’2017 revenue will reach $500 million with the purchase of Otometrics.

Though healthcare scores have yet to return to their normal highs as medical companies have consolidated because of pressure to reach affordable price points, dealmakers still have a positive outlook and expect for healthcare M&A activity to increase following the presidential election. Similar medical device deals include Patricia Industries’ wrapping up its acquisition of Laborie Medical Technologies for $640 million; Auris Surgical Robotics Inc.’s announcing its plan to purchase medical robot manufacturer Hansen Medical Inc. in a deal valued up to $129 million; and Johnson & Johnson’s buying Abbot Laboratories’ eye-surgery equipmentfor $4.33 billion.

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