Tecan Group has signed a definitive agreement to acquire medical devices manufacturer Paramit for a total consideration of $1bn (CHF920m) to extend its presence in the US and Asia.
Based in the US, Paramit also manufacturers life sciences instruments.
The company’s portfolio comprises various US Food and Drug Administration (FDA)-approved medical devices, such as surgical instruments, surgical robotic systems, point-of-care and personal testing devices and diagnostic systems.
Tecan expects the deal to boost its original equipment manufacturer (OEM) offering in the life sciences and in-vitro diagnostics sectors.
Furthermore, the acquisition will expand Tecan’s access to the tailored design and manufacturing space as well as aid in its entry into the medical device market.
Tecan will also gain access to Paramit’s cost-effective manufacturing services and computer-directed assembly technology, vPoke.
vPoke rectifies complex mechanical assembly into controlled assembly stages for medical devices and life science instruments.
Recently, Paramit purchased a research and development (R&D) site in Boston, which focuses on developing technology and designing complex products and systems for various sectors. This site will complement Tecan’s present R&D expertise.
The acquired company is also anticipated to bolster Tecan’s manufacturing engineering and industrialisation expertise.
Commenting on the Paramit acquisition, Tecan CEO Dr Achim von Leoprechting said: “The company’s extensive OEM offering and its state-of-the-art development and manufacturing facilities will strengthen our market reach and enable us to more effectively meet customer needs, scaling innovation from research all the way to the clinic.
“In addition to extending our core markets of life science research and diagnostics, the acquisition will also open a whole new growth market in the field of medical devices.”
Meanwhile, the deal will allow Paramit to utilise Tecan’s current OEM customer base and commercial network to extend its footprint in Europe and Asia, among other markets.
Subject to the necessary closing conditions, the deal is anticipated to conclude in the coming months.
Upon acquisition, Paramit, which employs about 1,000 people, will be included under Tecan Group’s Partnering Business unit.
Tecan estimates Paramit will generate nearly $300m revenues (CHF276m) next year.