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Laborie to take Cogentix private
Posted on Monday, 12 March 2018 14:49
Canadian medical equipment manufacturer Laborie Medical Technologies is buying US-based Cogentix Medical, which specialises in endoscopy devices, in a takeover with an enterprise value of USD 214.00 million.

Completion is slated for the second quarter of 2018 and is subject to customary closing conditions, including shareholder approval.

The bid price of USD 3.85 in cash per scrip represents a 14.2 per cent premium over the target’s close of USD 3.37 on 9th March 2018.

Founded in 1967, Laborie manufactures and supplies products for the use in gastrointestinal procedures and for the diagnosis and treatment of pelvic health in the urology, gynaecology, and colorectal fields.

Its equipment and technology includes catheters, ultrasound bladder scanners, and motor procedure chairs.

Chief executive Michael Frazzette said the purchase provides “product and channel scale to Laborie’s existing urology strategic business unit diagnostic and therapeutic portfolio, particularly in the areas of OAB (overactive bladder) and SUI (stress urinary incontinence)”.

Nasdaq-listed Cogentix makes and develops medical devices for flexible endoscopy, including its PrimeSight product line, which features a streamlined visualisation system and proprietary sterile disposable microbial barrier.

It also commercialises the Urgent PC neuromodulation design for the office-based treatment of OAB, which affects around 42.00 million US adults, of which 38.00 million (or 90.5 per cent) remain untreated or undertreated.

Headquartered in Minnesota, the firm has operations in New York, and Massachusetts, as well as in the Netherlands and the UK, and had assets totalling USD 74.04 million as of 30th September 2017.

Frazzette added that the acquiror’s “suite of technology will significantly expand Laborie’s therapeutic offering”, providing comprehensive cover “along the disease treatment continuum.”

Zephyr, the M&A database published by Bureau van Dijk, shows there have been 112 transactions targeting surgical and medical instrument manufacturers so far in 2018.

The largest such deal by far was Varian Medical Systems’ USD 1.21 billion takeover of Australia-based Sirtex Medical, which makes liver cancer-related devices.

© Zephus Ltd