Masimo has signed an agreement to acquire entire issued and to be issued share capital of LiDCO Group in a deal valued at approximately £31.1m ($40.1m).
According to the agreement, Masimo will offer £0.12 per share to LiDCO, an advanced hemodynamic monitoring devices maker.
With the deal, Masimo will hold not less than 90% in nominal value of the company’s shares, to which the offer relates.
The company will fund the payment entirely out of its cash resources made available by an intercompany line of credit.
LiDCO primarily targets critical care and high-risk surgical patients with primary markets in the UK, the US, and certain markets in continental Europe, China, and Japan.
The company develops equipment used for measuring physiological parameters such as cardiac output, stroke volume, and systematic vascular resistance.
LiDCO chairman Peter Grant said: “The offer of £0.12 per LiDCO share provides certainty to the LiDCO shareholders, enabling them to realise in cash in the near term the entire value of their holdings at a significant premium to the price, at which Lidco shares have traded in the market over the past few years.”
The company has a market capitalisation of approximately $12bn and develops innovative technologies that improve patient outcomes.
Masimo chairman and CEO Joe Kiani said: “Masimo shares LiDCO’s commitment to providing innovative, best-in-class monitoring solutions to support evidence-based clinical decisions to enhance patient safety and outcomes.
“I believe the complementary strategic fit between our respective technologies and businesses will enhance the prospects for LiDCO’s customers as part of Masimo Corporation’s global operations.”
In September, the Food and Drug Administration (FDA) cleared Masimo’s handheld pulse oximetry device called Rad-G Pulse Oximeter.