London-based Smith & Nephew said that the acquisition follows a successful two-year partnership deal with Pleasanton, Calif.-based Leaf Healthcare in which Smith & Nephew served as its exclusive distributor and as a strategic investor.
Leaf Healthcare’s flagship product is their Leaf patient monitoring system, which features a wearable wireless sensor designed to track patient movement and notify caregivers to prevent immobility-related health complications, such as pressure ulcers or injuries.
Smith & Nephew said that the Leaf system will join the Allevyn Life, Allevyn Gentle Border and Secura skin care products in its pressure injury prevention portfolio.
“The benefits of patient turning and improved patient mobility are well recognized, including the potential for shorter hospital stays. We are proud of the impact our technology has already made through our existing relationship with Smith & Nephew. We are excited by this new opportunity to deploy our award-winning pressure injury prevention technology through Smith & Nephew’s extensive advanced wound management portfolio,” Leaf Healthcare co-founder & CEO Dr. Barrett Larson said in a prepared statement.
Smith & Nephew said that it expects the acquisition to close during the second quarter of this year, and added that it will finance the purchase from existing cash and debt facilities.
“Consistent with our initial strategic investment, Smith & Nephew is focused on providing not just products to treat conditions, but also supporting clinicians with technologies designed for prevention as well as treatment, and helping healthcare facilities reduce the cost of care. The Leaf patient monitoring system is highly complementary to Smith & Nephew’s existing wound portfolio and we are excited by the opportunities of expanding this product within our global portfolio,” Smith & Nephew advanced wound management prez Simon Fraser said in a press release.
Last week, a group of Osiris Therapeutics (NSDQ:OSIR) shareholders announced they are suing to block its $660 million acquisition by Smith & Nephew because the purchase price is too low.