Natus Medical Incorporated announced that it has entered into a definitive agreement with Integra LifeSciences Holdings Corporation (NASDAQ:IART) under which Natus will acquire certain neurosurgery business assets from Integra LifeSciences in an all cash transaction for $47.5 million. With current annual revenue of approximately $50 million, the acquisition marks Natus’ entry into the $2 billion global neurosurgery market. The divestiture by Integra is contingent on the consummation of Integra’s proposed acquisition of Codman Neurosurgery.
As part of the transaction, Natus will acquire the global Camino ICP monitoring product line, including its San Diego manufacturing facility, from Integra. The sale also includes the U.S. rights relating to Integra’s fixed pressure shunts, as well as U.S. rights to Codman’s DURAFORM® dural graft implant, standard EVD catheters and CSF collection systems.
The market leading Camino® intracranial pressure monitoring system (ICP), is a modernized platform designed to incorporate both tunneled and bolted advanced monitoring technologies, which monitor ICP in either the parenchyma or ventricular space via proprietary catheters.
“This acquisition expands Natus’ market leading neurodiagnostic business into the adjacent neurosurgery market,” said Jim Hawkins, President and Chief Executive Officer of Natus. “We expect this acquisition to be immediately accretive to earnings with gross and operating margins similar to our consolidated margins.”
Integra is divesting these assets in connection with the review by the Federal Trade Commission (“FTC”) of Integra’s proposed acquisition of Johnson & Johnson’s Codman Neurosurgery assets. Both the divestiture and the pending acquisition of Codman Neurosurgery remain subject to final regulatory approvals and satisfaction of other customary closing conditions. Both transactions are expected to close in October 2017 after securing regulatory clearance.
Natus will use cash on hand and available from its credit facility to fund the acquisition.