Natus Medical Incorporated today announced that it has set up a contract to acquire privately held SonaMed Corporation.
Massachusetts based SonaMed manufactures and markets the Clarity Screener and associated disposable supplies that aid medical practitioners in screening for hearing loss in newborns.
Natus has agreed to acquire all outstanding shares of SonaMed capital stock in a cash transaction. The agreement has received the approval of the Boards of Directors of both companies and is subject to the approval of SonaMed stockholders and customary closing conditions. Certain stockholders of SonaMed have entered into voting agreements by which they have agreed to vote more than 50% of the outstanding SonaMed capital stock in favor of the transaction. The parties expect the acquisition to be completed in approximately 40 days. Other terms of the transaction were not disclosed.
SonaMed reported revenue of $3.5 million for its year ended December 31, 2007.
Jim Hawkins, President and Chief Executive Officer of Natus commented, "SonaMed has successfully created a distinct presence in the domestic newborn hearing screening market. We believe SonaMed is a very well run company that has been consistently profitable for many years and we expect this acquisition to be accretive to earnings per share in the first full quarter of ownership."
"We expect the Clarity screener to fill out our product line in newborn hearing screening," added Hawkins. "With two-thirds of Sonamed's revenue coming from disposable supplies, combined with their high gross profit margin, we believe this is an ideal fit for our business model."