US-based Stryker has signed a definitive agreement to acquire Patient Safety Technologies in an all cash transaction for $2.22 per common share, with a total transaction value of approximately $120m, including estimated fees and expenses.
Patient Safety Technologies operates its business through its wholly owned subsidiary, SurgiCount Medical. Its Safety-Sponge System offers a way to eliminate unnecessary costs from the healthcare system while improving quality of care.
The system includes barcoded surgical sponges and towels, an integrated barcode scanner, and SurgiCount 360 compliance tracking software.
The system helps prevent foreign objects from being retained in the body while in the operating room, improving patient safety and reducing healthcare costs.
Launched in 2006, SurgiCount has established a strong customer base of more than 300 hospitals, including several of the leading medical institutions in the US.
The Safety-Sponge System will boost Stryker Instruments' broad portfolio of products that are designed to optimise the perioperative experience by reducing hazards, streamlining operations, and improving outcomes for patients.
This transaction will help boost the medical device maker's offerings of operating room equipment.
Stryker group president MedSurg and Neurotechnology Timothy J Scannell said: "This acquisition aligns with Stryker's focus on offering products and services that have demonstrated cost effectiveness and clinical outcomes."
The transaction, which is subject to stockholder approval and the expiration or termination of the Hart-Scott-Rodino Antitrust Improvements Act waiting period, is expected to close in the first quarter of 2014.
Image: The Safety-Sponge System. Photo: courtesy of Patient Safety Technologies, Inc / SurgiCount Medical.