Natus Medical Inc. (NSDQ:BABY) bought out newborn baby care device maker Medix.
The San Carlos, Calif.-based children’s medical products maker paid $14 million in cash for the company, but the price could rise if certain revenue milestones are met in 2011 and 2012.
Argentina-based Medix develops and manufactures incubators for use in hospitals and ambulances, infant warmers, and LED-based photo-therapy devices. Many of their products already have Food & Drug Administration clearance, and Natus is considering marketing them in the U.S. through its own sales force, according to a press release.
"We believe this acquisition will allow us an efficient entry into the Brazilian market, which represents the seventh-largest economy in the world. Having this presence in South America will assist Natus in other markets in the region as well," Natus CEO Jim Hawkins said in prepared remarks. The company plans to retain Medix’s executive leadership.
For its fiscal year ending Dec. 31, Natus said it expects to post revenues of $217 million, versus the $211 million it predicted prior to the acquisition. Medix’s revenue for its fiscal year ending Oct. 31, 2010, will be approximately $26 million, according to the release. The company is expecting the acquisition to help increase earnings in the first quarter of 2011, not including restructuring and other costs directly related to the deal.
