Medical technology company Hillrom has signed a definitive agreement to buy respiratory care solutions developer Breathe Technologies for $130m in an all-cash transaction.
Founded in 2005, Breathe Technologies has annual revenues of $10m. It developed a wearable, non-invasive ventilation technology intended to improve patient mobility.
The company’s Life2000 Ventilation System is a mechanical ventilation device designed for various conditions such as chronic obstructive pulmonary disease (COPD), interstitial lung disease and restrictive thoracic disorder.
Designed for homecare and critical-care settings, the system can be separated from the stationary Life2000 Compressor to allow use outside the home through an alternate pressure source.
The device holds US Food and Drug Administration (FDA) 510(k) clearance.
Hillrom expects the acquisition to enhance its Respiratory Care portfolio, which includes The Vest, VitalCough, The MetaNeb System and Monarch Airway Clearance System.
Hillrom president and CEO John Groetelaars said: “The acquisition of a highly differentiated, wearable non-invasive ventilation technology provides an exciting growth platform that utilises our direct Respiratory Care commercial channel and business model.
“This transaction represents another example of our plan to strategically deploy capital with a disciplined approach toward higher-growth and higher-margin businesses by expanding into the disruptive new category of non-invasive ventilation.”
The transaction is subject to customary closing conditions and set to close in the fiscal fourth quarter of this year.
Besides respiratory care devices, Hillrom develops a variety of solutions for patient diagnosis, treatment and monitoring applications.
Last month, the company launched a handheld retinal camera called Welch Allyn RetinaVue 700 Imager for the diagnosis of diabetic retinopathy during routine primary care office visits.
The retinal camera features an image-quality assessment algorithm and can capture images in pupils as small as 2.5mm, noted Hillrom.