Comprehensive M&A data with integrated detailed company information

Masimo to acquire the connected care unit of NantHealth
Posted on Tuesday, 14 January 2020 14:51
Masimo has agreed to pick up the connected care division of NantHealth for USD 47.25 million in an upfront cash payment.

The business provides medical device interoperability to hospitals and health systems, with its portfolio including the product connectivity device DCX, patient vitals software VCX, connectivity hub HBox and interface cable Shuttle.

Masimo said the acquisition is part of its strategic plan to help care providing facilities improve the continuum of help through automation, connectivity and innovative non-invasive monitoring technologies.

Joe Kiani, chief executive of the acquiror, said: “Not only does connected care immediately increase our customer footprint but also provides us with products which complement our current portfolio.”

Completion is expected in the first quarter of 2020, subject to the usual raft of conditions.

Masimo will finance the acquisition with existing cash on hand, with the company to include the estimated financial impact of the transaction in its full-year 2020 financial guidance, which was issued in a separate press release today.

The connected care business is expected to contribute one percentage point to its full-year 2020 revenue guidance growth rate and it will be slightly dilutive to non-generally accepted accounting principles earnings per share in 2020, which will become accretive in the beginning of 2021.

Masimo said its product revenue for the full-year 2019 will range from USD 933.00 million to USD 936.00 million.

For NantHealth, the decision to sell the connected care division enables the company to focus on growing its NaviNet and Eviti software-as-a-service products.

The group is a next-generation personalised healthcare company enabling improved patient outcomes and more effective treatment decisions for critical illnesses.

Zephyr, the M&A database published by Bureau van Dijk, shows there were 5,761 deals targeting companies involved in research and development in the physical, engineering and life sciences sector announced worldwide in 2019.

Danaher picked up General Electric Company's BioPharma business for USD 21.40 billion, in the largest of these, followed by Pfizer buying Array BioPharma for USD 11.40 billion.

Novartis acquired the Medicines Company for USD 9.70 billion, Eli Lilly and Company purchased Loxo Oncology for USD 8.00 billion and Ethicon paid USD 5.75 billion for Auris Health, in some of the biggest deals announced in the industry last year.

© Zephus Ltd