CareFusion, a medical technology company, has signed an agreement with Natus Medical to divest its Nicolet business for a cash purchase price of around $58m.
Nicolet develops clinically differentiated neurodiagnostic and monitoring products, including a portfolio of electroencephalography (EEG) and electromyography (EMG) systems, as well as vascular and obstetric doppler sensors and connectivity products.
Acquisition is likely to close in July 2012, subject to customary closing conditions. Natus plans to finance the acquisition with existing cash and borrowings under its revolving credit facility.
Kieran Gallahue, CareFusion chairman and CEO, said the decision to divest the Nicolet business is in line with the company's strategy to simplify and focus its operations.
Natus CEO Jim Hawkins said the Nicolet acquisition will strengthen the company's existing neurology portfolio and provide it with new product categories.
"Combining our strong product portfolio and support expertise with that of CareFusion's Nicolet business will allow us to bring additional value to our customers," Hawkins added.
"Further, this acquisition will better position Natus in international markets, as more than 50% of the CareFusion Nicolet business is in markets outside of the United States."
CareFusion's product line includes Alaris infusion pumps, Pyxis automated dispensing and patient identification systems, AVEA, AirLife and LTV series ventilation and respiratory products, ChloraPrep skin prep products, MedMined services for data mining surveillance, Nicolet neurological monitoring and diagnostic products and V. Mueller surgical instruments.
Natus is a provider of healthcare products used for the screening, detection, treatment, monitoring and tracking of common medical ailments in newborn care, hearing impairment, neurological dysfunction, epilepsy, sleep disorders and balance and mobility disorders.