CryoLife to acquire Hemosphere
Hemosphere is to be bought by CryoLife.
Medical device and tissue processing company CryoLife has signed a definitive agreement to purchase Haemodialysis Reliable Outflow Graft development and marketing brand Hemosphere.
The value of this acquisition will be $17 million (£10.59 million) in cash, as well as revenue milestone-based finance up to a maximum of $4.5 million.
Negotiation techniques could help the transaction run smoothly and the deal is forecast to be completed at some time this month (May 2012), subject to the conclusion of customary closing conditions.
It is thought the acquisition will enable CryoLife to expand into a growing market worth more than $250 million by utilising a high-margin, patent protected device.
"We believe there is a significant opportunity for our sales team to leverage their strong relationships with vascular surgeons," chief executive officer and president of the company Steven Anderson said.
During the first quarter of 2012, CryoLife reported revenues of $32.3 million, representing a seven per cent increase on the $30.2 million posted for the first three months of 2011.
Posted by Edel Quinn
Source: CryoLife press release, May 15th