Opto Buys 76% Stake In Cardiac Science Corporation

Opto Buys 76% Stake In Cardiac Science Corporation

By Sibi Sathyan

  • 06 Dec 2010

Banglore-based Opto Circuits (India), which is into of medical devices with consolidated revenue of $243 million (Rs 1077 crore), has announced the completion of the merger of its wholly-owned subsidiary Jolt Acquisition Company with US-based Cardiac Science Corporation, said its filing to NSE.

Following the merger, Cardiac Science Corporation has become the wholly-owned subsidiary of Opto.

Under the definitive merger agreement, Opto had agreed to acquire all of the outstanding shares of Cardiac common stock for $2.30 per share.  Opto Circuits has acquired around 76% of the outstanding common shares of US-based Cardiac Science Corporation as part of its acquisition plans.

According to earlier reports, the value of the transaction is close to $55 million. Despite several attempts, the company spokesperson was not available for comment.

Cardiac Science manufactures and markets a family of advanced diagnostic and therapeutic cardiology devices and systems. The company has established cardiac businesses with the trusted brands like, Burdick, HeartCentrix, Powerheart and Quinton with customers in more than 100 countries worldwide.

It specialises in many healthcare equipment in cardiology space including electro-cardiograph devices, cardiac stress treadmills and systems, vital sign monitors among others. It reported revenues of $156.8 million in 2009, down 24% from 2008.

In its acquisition spree in both domestic and overseas geographies, this is the third acquisition of Opto Circuits this year. Opto, which is essentially an export oriented unit with a manufacturing and R&D facility at Bangalore, acquired the US-based Unetixs Vascular Inc at $9.7 million in July and a domestic company, NS Remedies for $1.50 million in April.

Unetixs designs, which holds 14 patents worldwide, develops and markets a full line of USFDA-approved vascular diagnostic systems and accessories. The products cover a wide range of applications from high-end vascular diagnostic systems to fully self-contained low-cost diagnostic stations. 

In April, Opto Circuits acquired Kolkata-based N S Remedies Ltd, Which is engaged in stent manufacturing and research & development (R&D) activities, for $1.5 million. The acquisition aimed at helping Opto to manufacture stents, and reduce its dependency on external agencies. This backward integration also helped Opto enhance the value of the products offered by it in the interventional cardiac space, besides reducing the manufacturing costs.

It earlier acquired a firm called Criticare Systems, Inc, a non-invasive medical devices manufacturer in the US in 2008. Prior to that, it had acquired EuroCOR GmbH in Germany and Palco Labs in USA. In 2009, the company also raised Rs 400 crore through a qualified institutional placement (QIP).