Australian medical devices company Uscom has entered into an agreement to acquire Pulsecor, a New Zealand-based medical device technology firm that has developed novel non-invasive central blood pressure measurement techniques.
Under the terms of the agreement, Uscom will acquire all Pulsecor technology and products, as well as 34 global patents and patent applications related to the measurement and monitoring of blood pressure, for 5 million fully paid ordinary Uscom shares.
Uscom executive chairman Rob Phillips said the company expects scientific, commercial and strategic collaborations from the acquisition.
"We believe this acquisition will change the cardiovascular medical device market and is anticipated to provide immediate access to revenue for Uscom as we feed the BP Plus into our developing global distribution channels," Phillips said.
Pulsecor was valued at approximately NZ$2.9m ($2.34m) at its last capital raising in May 2011.
Pulsecor's blood pressure measurement product, BP Plus is currently being sold internationally, and has US Food and Drug Administration 510(k), European CE mark and Australian Therapeutic Goods Administration approval.
The device, which was developed by Weill Cornell Medical College anesthesiology professor Nigel Sharrock, offers unique information about the heart and vessels that can be used to identify early cardiovascular disease and improve management of hypertension.
Following the acquisition, the BP Plus device will be sold through Uscom's growing global distribution network.
In addition, Sharrock will join the Uscom Medical Advisory Board as a specialist in cardiovascular medicine and anesthesia.
Sharrock said that the acquisition will ensure that Pulsecor products have the maximum clinical and commercial impact.
"We have spent 10 years developing Pulsecor and we believe these products are poised to change global hypertension practice," Sharrock said.
"I look forward to working with Uscom to further develop a truly major medical device company specializing in noninvasive cardiovascular monitoring."
The agreement is conditional on completion of satisfactory due diligence by Uscom.
K&L Gates (Australia) and BDO have advised Uscom on the deal, which will be the first international corporate acquisition by the company.