Indian medical devices company Opto Circuits has acquired US-based Cardiac Science Corporation for around $64 million. Reports indicate that the Indian business has purchased 76% of the US business, with each shareholder being paid $2.30 for each common share.
The company has acquired a number of healthcare businesses in the past year; purchasing US-based Unetixs Vascular Inc at $9.7 million in July, and Indian company NS Remedies, which is engaged in research and development, for $1.5 million in April. This deal will make Cardiac Science a wholly-owned subsidiary of Opto Circuits.
Cardiac Science Corporation manufactures and markets advanced diagnostic and therapeutic cardiology devices and systems. They have a number of established brands such as Burdick, HeartCentrix, Powerheart, and have customers in over 100 countries. Opto Circuits specialises in designing, developing, manufacturing and marketing healthcare equipment and interventional products. Key markets for the company include the US, Europe and South East Asia.
A recently published report, ‘Diagnostic Imaging Equipment – Emerging Markets (BRIC- Brazil, Russia, India, and China) 2010 – 2015', suggests that the diagnostic equipments market of the BRIC countries, of which India is one, will increase in value; from an estimated $3,150.4 billion in 2010 to $4,287.3 billion in 2015, at a CAGR (compound annual growth rate) of 6.4%.
This data suggests that while the Indian firm is looking to expand beyond India into the potentially lucrative but mature US market, looking closer to home, as they have done with the April purchase of NS Remedies may yield larger returns in the long-term.
Source: Companies and Markets