Given Imaging Ltd. (Nasdaq: GIVN; TASE: GIVN) today signed an agreement to acquire Sierra Scientific Instruments Inc. for $35 million in cash from healthcare-focused private equity firm Water Street Healthcare Partners. Sierra Scientific develops gastrodiagnostic devices. The company expects to close the deal in early April.
Yokne'am-based Given Imaging develops the PillCam endoscopic camera for the esophagus, small intestine, and colon.
Los Angeles-based Sierra Scientific is a profitable company, without debts. Its unaudited financial report states that its revenue was $18 million in 2009. The company's products diagnose a range of gastrointestinal disorders, including gastroesophageal reflux disease (GERD).
Given Imaging president and CEO Homi Shamir said, "Sierra Scientific is a strong, well managed company respected by the GI community for its cutting-edge products which deliver reliable performance. This acquisition strengthens Given Imaging's position as the global leader in the gastroesophageal diagnostic market."
Sources believe that Given Imaging will revise its 2010 revenue and profit guidance upwards when it publishes its financial report for the fourth quarter and full year of 2009 on May 11.
Shamir does not rule out further acquisitions. He said. "We are examining additional things all the time. This is a very good time for acquisitions and Given is a company generating cash and profit."
Relating to the health reform in the US he said, "It is difficult to say what the influence will be. On the one hand, the reform very much increases the number of health insurance members, but on the other hand we don't know what the influence will be because somebody has to pay."
Given Imaging's share closed at $18.86 on Nasdaq on Friday giving a market cap of $553 million. The share price rose 2.8% in morning trading on the TASE today to NIS 72.74.
Published by Globes [online], Israel business news - www.globes-online.com - on March 22, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010