Galil Medical agreed to pay $10.6 million to acquire Perseon Medical Corp. (NSDQ:PRSN) and its MicroThermX microwave ablation device.
The deal calls for Arden Hills, Minn., and Yokneam, Isrel-based Galil to pay $1 per share plus 2¢ per warrant for Perseon, formerly known as BSD Medical.
“We believe this transaction propels us to a market leadership position in minimally invasive treatment of cancerous and non-cancerous tumors, with a broadened product offering that delivers both ‘hot and cold’ ablation solutions for our growing base of interventional radiologists,” Galil Medical president & CEO Martin Emerson said in prepared remarks. “We see tremendous opportunity to scale sales of both Perseon’s microwave and our cryotherapy ablation solutions, both of which represent high growth, high margin opportunities attacking a large and growing global market for tumor ablation.”
“We believe Galil Medical is the ideal partner to allow Perseon to continue our efforts to build awareness and increase sales of MicroThermX, which is a companion technology to cryotherapy ablation and is used by the same interventional radiologists, streamlining our sales efforts. Our companies are also closely aligned in our commitment to investing in robust product development pipelines and clinical research activities to stay at the forefront of ablation technology,” added Perseon president & CEO Clint Carnell. “Marty and his team have built a well-respected brand and reputation as pioneers in the interventional radiology market. We look forward to leveraging their world-class distribution channel, which includes relationships with more than 300 hospital units in the U.S. alone, to accelerate MicroThermX sales both in the U.S. and around the world.”
Emerson is due to stay on as president & CEO, with Carnell joining Galil Medical’s board.
The deal comes just in time for Perseon, which reported 3rd-quarter losses of -$3.0 million on sales of $556,000, as the company said it has only enough cash to last another 3 months or so “without substantial cost cutting to a level that would include fewer sales resources and compliance levels of staffing and activities across the company.”
“In addition, the company’s financial advisors have advised that prospects of raising additional equity on acceptable terms are not likely,” Perseon said.