Both companies’ boards confirmed in an announcement that they agreed on the terms of a recommended cash offer to be made by Masimo for the entire issued and to be issued share capital of Lidco, totaling the $40.1 million (£31.1 million) as shares are valued at about 15¢ (£0.12) per share.
Masimo, with a market capitalization of about $12 billion, according to the announcement, is acquiring in Lidco a hemodynamic monitoring device maker which targets primarily critical care and high-risk surgical patients with primary markets in the U.S. and United Kingdom, plus certain markets across continental Europe, China and Japan.
Lidco manufactures and sells equipment that measures metrics including cardiac output, stroke volume and systematic vascular resistance, as well as blood monitoring, intravenous fluid monitoring and vasoactive support. Additionally, the company distributes several complementary third-party products.
“Masimo shares Lidco’s commitment to providing innovative, best-in-class monitoring solutions to support evidence-based clinical decisions to enhance patient safety and outcomes,” Masimo chairman & CEO Joe Kiani said in the announcement. I believe the complementary strategic fit between our respective technologies and businesses will enhance the prospects for Lidco’s customers as part of Masimo Corporation’s global operations.”
Under the agreement, Masimo will hold Lidco shares carrying no less than 90% in nominal value of the shares to which the offer relates. Should the offer be declared unconditional in all respects, Masimo intends to take the necessary actions to cancel the admission to trading of Lidco shares on AIM and re-register Lidco as a private, limited company.
“The Lidco Board continues to believe that the implementation of Lidco’s existing strategy as an independent company has the potential to generate significant value for LiDCO Shareholders in the long-term,” Lidco chairman Peter Grant said. “However, the Board also recognizes the challenges faced by Lidco as a relatively small business competing against significantly larger players. The offer of 12 pence (15¢) per Lidco Share provides certainty to the Lidco Shareholders enabling them to realize, in cash in the near term, the entire value of their holdings at a significant premium to the price at which Lidco Shares have traded in the market over the past few years.”