Irvine, Calif.-based Edwards said that it will pay $2.45 per share of common stock of Branford, Conn.-based Casmed in the all-cash deal.
Edwards said that it currently has a pending FDA 510(k) clearance submission for a smart cable and software module that will allow for compatibility between Casmed’s Fore-sight cerebral oximeter, intended to provide non-invasive tissue oxygenation measurements, and Edwards’ HemoSphere hemodynamic monitoring platform.
The device was the result of a collaborative deal between the two companies, and already has CE Mark clearance in the European Union, Edwards said.
“Cerebral oximetry technology provides an important indicator of oxygen levels in the brain, which can enhance clinician decision-making. We believe the incorporation of Casmed’s Fore-Sight technology into Edwards’ leading hemodynamic monitoring platform, along with Edwards’ predictive analytics capability, will strengthen Edwards’ leadership in smart monitoring technologies by providing physicians with a more comprehensive status of their surgical and critically ill patients,” Edwards critical care corp VP Katie Szyman said in a prepared statement.
Edwards said that as a condition of the acquisition’s closing, each holder of Casmed’s Series A convertible preferred stock or exchangeable preferred stock will agree to convert the stock into common shares in Casmed, and will receive transaction consideration as common stock holders.
The acquisition is expected to close during the second quarter of this year, Edwards said.
“We are pleased with this opportunity to bring together Casmed’s expertise in brain and tissue oxygenation monitoring with Edwards’ long history of leadership in hemodynamic monitoring. We are confident that the combination of these technologies will result in an important measurement tool for physicians that can empower them to improve care,” Casmed prez Thomas Patton said in a press release.
Late last month, Edwards posted fourth quarter and full year 2018 earnings that topped earnings per share consensus on Wall Street, but missed on full-year sales expectations.