The deal was made for cash over a 5-year period, with an initial payment of $427,000 (EU€375,000) made at closing, and a remaining payment of $143,000 (EU€125,000) due in October, 2020, the Clearwater, Fla.-based company said.
“We are pleased to have completed a transaction that brings in-house the technical know-how that Bovie Bulgaria has accumulated over the last 16 years in working with Bovie Medical and enables us to form a lasting partnership with its managing director, Nikolay Shilev. Nikolay has entered into a 5-year employment contract with Bovie Bulgaria and will receive an inducement grant of 225,922 shares of Bovie Medical restricted stock priced at $2.00 per share that will vest ratably over a five-year period. The Bulgarian manufacturing facility will be fully dedicated to our production needs and will be of immediate financial benefit to the company. Additionally, it positions us to capture more European business for both J-Plasma and our core product portfolio,” Bovie CEO Robert Gershon said in prepared remarks.
The company said the deal will “drive operating efficiencies” that it expects will reduce operating expenses in 2016 and 2017 by an aggregate net amount of approximately $850,000.
In September, Bovie said it signed a 3-year group purchase organization agreement with Amerinet to supply its members with Bovie’s J-Plasma.
Clearwater, Fla.-based Bovie Medical’s J-Plasma is a plasma-based cutter and coagulator that uses helium ionization to produce a focused beam of ionized gas over a blade, used for cutting or coagulating during surgeries.