Novadaq Technologies Inc. (TSX:NDQ) signed multi-year sales and marketing agreements with Kinetic Concepts Inc. for the commercialization of its Spy imaging system.
KCI will pay Novadaq $3 million up front for the Toronto-based company’s fluorescence imaging system, which allows surgeons to assess tissue perfusion in real time. Novadaq will also receive additional milestone payments.
The agreements range from six to seven years and cover commercialization in North America, Europe and Japan.
"KCI has a strong history of providing the best in class technologies for the care of complex wounds and reconstructive procedures, making them the perfect partner to drive the adoption of Spy in this large market," Arun Menawat, Novadaq president & CEO said in prepared remarks.
KCI, founded in 1976, makes products for the wound care, bariatric and critical care markets.
Early this month, Apax Partners closed a $6.1 billion leveraged buyout of the wound care company, which pulled in just over $256 million in profit on $2.02 billion in sales in 2010.
The $68.50-per-share deal was approved by KCI’s shareholders in late October. KCI president & CEO Catherine Burzik agreed to stay on until next summer, with the rest of senior management eligible to buy into the new private company.
To fund the LBO, first broached in July, the consortium drummed up about $2.5 billion worth of senior secured debt financing, issued another $17.75 billion in second-lien senior secured notes and $750 million of senior notes due in 2019.
It’s one of the largest leveraged buyouts since before the global recession of 2008.