Mar 22 2010
Given Imaging Ltd (NASDAQ: GIVN) today announced that it has signed a definitive agreement to acquire privately-held Sierra Scientific Instruments (Sierra Scientific) for $35 million in cash.
Sierra Scientific is the leading provider of specialty diagnostic devices for the gastrointestinal (GI) tract and will become a wholly-owned subsidiary of the Company.
Given Imaging is acquiring Sierra Scientific from Water Street Healthcare Partners, a leading private equity firm focused exclusively on health care.
The Company expects that the deal will close and become effective on or about April 1, 2010. Sierra Scientific is profitable, has a debt-free balance sheet and recorded unaudited revenues of approximately $18 million in 2009. The Company expects that the acquisition, net of transaction expenses, will be accretive within a short period. Coupled with Given Imaging's existing Bravo® pH Monitoring System, the acquisition positions Given Imaging as the leader in the market for esophageal diagnostics, including manometry as well as pH and impedance monitoring, for which the 2009 served market was estimated at $60 million. The Company intends to expand this market by building on this leadership position.
"Sierra Scientific is a strong, well managed company respected by the GI community for its cutting-edge products which deliver reliable performance. This acquisition strengthens Given Imaging's position as the global leader in the gastroesophageal diagnostic market. With manometry, impedance, catheter pH and Bravo wireless pH products, we advance our vision of providing total world-class solutions to our GI customers' evolving product needs," said Homi Shamir, president and chief executive officer, Given Imaging. "From a financial standpoint, acquiring Sierra will increase our revenue base, and ultimately profitability. It enables us to diversify our product and geographic revenues through access to additional best-in-class products, people, and manufacturing assets. We plan to offer our full product portfolio to our expanded customer base to drive broader use of all of our products."
Source: http://www.givenimaging.com/