In a flurry of moves starting last week, medical device company EndoChoice pulled down a trifecta: A merger with Peer Medical, a $43 million funding round led by Sequoia Capital, and the acquisition of German endoscope maker RMS Endoskopie-Technik.
Alpharetta, Ga.-based EndoChoice said it plans to use the proceeds from the investment in the merged company to "finance projected growth." Some of that cash presumably went into the RMS deal, although no financial terms were disclosed.
"German products are known for mechanical and engineering excellence, and RMS exemplifies these qualities," EndoChoice founder & CEO Mark Gilreath said in prepared remarks. "This strategic acquisition supports EndoChoice’s platform approach and strongly positions EndoChoice for continued success."
Peer Medical makes the Full Spectrum Endoscope, designed to increase the field of view during endoscopy and colonoscopy to detect cancerous polyps and abnormal lesions. Conventional endoscopes have a 170 degree field of view, according to EndoChoice; the Peer device gives a 330-degree view.
"It is well known that we are missing 25% to 40% of polyps during colonoscopy. Conventional scopes are comparable to driving a car without side windows – can you imagine all the things you are missing? The Full Spectrum Endoscope
provides the side windows for a full view and it is a tremendous difference," Gilreath said.
Peer’s Israel facility will become EndoChoice’s R&D center, with manufacturing operations at the RMS plant outside of Hamburg.
The Full Spectrum Endoscope has yet to hit the market, although it’s received CE Mark approval in the European Union and FDA 510(k) clearance in the U.S., according to EndoChoice.
