![]() ![]() The selling price of $145 million is approximately 10x its EV/EBITDA of $15.1 million, but this may not take into account the amount that Natus will need to invest for the completion of the OTOSCAN technology as well as other expenses related to its commitments to Audiology Systems. Also, I am certain that GN Otometrics and its employees will benefit from being part of the large Natus group and from Natus’ proven ability to successfully integrate acquired companies.” “The strategic partnership will benefit GN Hearing and Natus in general, specifically in connection with the innovative OTOSCAN technology to be launched next year. “The agreement with Natus underlines GN’s dedicated hearing instrument strategy as well as GN Hearing’s focus on strategic partnerships, as most recently seen in the agreement with Audigy Group in North America,” said GN CEO Anders Hedegaard. “The Otometrics brand will complement our current portfolio and will further increase our combined growth potential.” “The combination of Natus and Otometrics creates a global leader in hearing assessment, hearing screening, and balance assessment, said Natus President and CEO Jim Hawkins in a press statement. Additionally, what is anticipated to be the world’s first complete digital ear scanning solution, OTOSCAN, will be fully commercialized by Natus with future royalties to GN Hearing. ![]() ![]() ![]() This appears to be similar to the strategic development initiative that GN currently has with Cochlear Corp. GN Hearing reports that the company and Natus have also entered into a strategic partnership to collaborate on future technology, product development, and commercialization. According to GN, the divestment is designed to strengthen GN Hearing’s focus and strategic direction as a dedicated hearing instrument company, with GN Hearing being in a unique position to continue to deliver industry leading growth and profitability. However, the worldwide diagnostics market has experienced a slowdown, with unusually low tender activity. Otometrics comprises about 8% of GN’s total revenues, and its revenues in 2015 were DKK 649 million (US$98 million) with a 2% organic growth rate which was in line with an overall hearing diagnostic market growth rate of 0-2%. Natus is a Nasdaq-listed company (BABY) with revenues of US$376 million in 2015, and is a leading provider of healthcare products and services used for the screening, detection, treatment, monitoring, and tracking of common medical ailments in neurological dysfunction, epilepsy, sleep disorders, newborn care, hearing impairment, and balance and mobility disorders. Its products include testing equipment and software for newborn hearing, audiologic diagnostics, and comprehensive hearing testing and fitting, and includes audiometry, immittance, evoked potential, infant screening, video otoscopy, ENG/VNG, calorics, and balance platforms. Otometrics-which owns the Aurical, Madsen, and ICS brands, as well as Audiology Systems and GENIE sound rooms-is the world’s largest developer and manufacturer of hearing and balance assessment equipment. Closing of the transaction is subject to regulatory approval and is targeted by end of 2016. GN Hearing, a division of GN Store Nord A/S, Ballerup, Denmark, is divesting its hearing testing device segment and has entered into an agreement to sell GN Otometrics to Natus Medical, San Carlos, Calif, for US$145 million to be settled in cash on a debt and cash free basis. ![]()
0 Comments
Leave a Reply. |