Through the deal, Little Falls, N.J.-based Cantel Medical will pay $21.1 million up front and $3.7 million in an earnout structure slated to pay out at two-years after the deal closes.
Aexis Medical develops integrated information technology solutions designed to support management of instrument reprocessing workflows and data reporting in hospital environments, and employs approximately 60 employees including software developers, sales and other functions, Cantel said.
“We’re excited that Aexis Medical is now part of Cantel and we welcome their employees to our team. The integration of Aexis Medical’s robust IT solutions will enable us to transform how we innovate and approach customers holistically to address their unmet infection prevention needs using healthcare data analytics. In addition, this acquisition also allows us to enter into a largely untapped global market for healthcare information analytics in infection prevention that will advance our business strategy and better position us for future sustainable growth,” Cantel prez & CEO Jorgen Hansen said in a prepared statement.
Cantel Medical said that Aexis Medical reported sales of $4.2 million last year, and that it expects the acquisition to be modestly dilutive to GAAP earnings per share for its fiscal years 2018 and 2019 and neutral and slightly dilutive to non-GAAP EPS during the same years, respectively.
“Combining Cantel’s complete circle of protection products with Aexis Medical’s proven platform will increase the value that we provide to our customers. The addition of their systems and services allows us to expand our current endoscopy portfolio and extend our footprint in the hospital’s endoscopy unit, central sterile department, and operating room where we can deliver advanced infection prevention solutions to these customers,” Cantel endoscopy division prez Dave Hemink said in a press release.
Earlier this month, Cantel Medical beat the consensus forecast with its fiscal second-quarter results today, but received a tepid reaction on Wall Street.