Irvine, Calif.-based Masimo pulled the trigger on the acquisition after it disclosed an investment in August 2019 that included an exclusive option to purchase Würzburg, Germany-based TNI. Masimo expects to close the deal in the second quarter of 2020 using cash on hand. The company also said it expects the transaction to have an immaterial impact on its net earnings in 2020.
TNI’s SoftFlow technology is designed to provide high-flow, warmed and humidified respiratory gases to spontaneously breathing patients with serious pulmonary conditions. The ventilators generate a regulated high flow of room air or a mix of room air and oxygen.
The system includes an integrated flow generator, respiratory circuit and patient interface and operates without the need for pneumatic systems. It can be used both in the hospital and at home, according to a news release.
“The TNI team is excited to join Masimo and leverage their deep engineering and commercial expertise to continue delivering our technology to a large and growing global market for therapy with nasal insufflation,” TNI CEO Ewald Anger said in the news release.
Masimo CEO Joe Kiani said the recent coronavirus outbreak has led to increased demand for TNI’s technology, which, in turn, led Masimo to exercise its option to buy before its expiration and allow it to scale manufacturing.
“We have been closely monitoring TNI since Masimo made its investment last summer and are thrilled to see the tremendous progress they have made in such a short time,” added Kiani. “We believe this technology will provide clinicians with important additional tools to address the growing number of people affected by pulmonary diseases and respiratory-related illnesses, including those suffering from COVID-19.”