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Haemonetics drops $60 million on GlobalMed, posts Q3 gains

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Haemonetics Corp. (NYSE:HAE) is expanding its reach into hospital and blood center management, announcing a definitive agreement to pay $60 million for a California-based healthcare software company.

Company executives said the deal — the company’s fourth in less than a year — for GlobalMed Technologies Inc. should significantly expand Haemonetics’ offerings for blood-collection centers with little overlap of its existing business. The acquisition also should broaden Haemonetics’ presence in Europe and Asia, they said.

Global Med’s domestic operations include Wyndgate Technologies, supplying software products and services to donor centers and hospital transfusion services; eDonor, a web-based donor relationship management system; and PeopleMed, offering validation, consulting and compliance software. The company also operates an European subsidiary, Inlog SA, providing cellular therapy software in addition to donor center and transfusion management tools.

“At its core, effective blood management is software,” Haemonetics CEO Brian Concannon said during a Feb. 1 conference call discussing the deal and fiscal third-quarter results for the Braintree, Mass.-based company.

With $8 million in revenues during the three months ended Dec. 31, 2009, software solutions currently comprises only about 5 percent of Haemonetics’ total business, although the GlobalMed acquisition should nearly double segment revenues in future quarters. Through the first nine months of 2009, GlobalMed generated $1.6 million in net income on $23.7 million in revenues.

Overall, Haemonetics reported an $18 million profit during the quarter, on $165 million in revenues. Growth was strongest in the company’s plasma disposables segment, rising 10 percent from year-ago levels to $59 million. During the conference call, company officials said they expect the plasma business will continue to drive Haemonetics’ growth, benefiting from rising market share and price improvements as well as an expanding market.

Haemonetics plans to soon launch a formal tender offer for GlobalMed shares, offering $1.22 per common share, with the transaction slated to close by the end of March. Concannon said the company should have about $100 million in cash on hand after the deal is completed.

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