Capnography respiratory monitors and modules manufacturer Oridion Systems Ltd. (SWX: ORIDN) has been acquired by Ireland's Covidien plc (NYSE: COV) for $346 million in cash at $23 per share. The boards of both companies have approved the deal, which is due to be completed by June. Following the acquisition, the company will become part of Covidien's oximetry and monitoring product line.
Oridion is Covidien's second Israeli acquisition within less than three weeks, following the acquisition of pulmonary endoscope developer superDimension for $300 million.
Oridion's Microstream capnography monitors and modules measure carbon dioxide level in exhaled breath to provide an early indication of restricted airways, facilitating patient care and making it safer.
The acquisition was made at a premium of 91% on Oridion's average closing price over the preceding 60 business days.
Jerusalem-based Oridion reported 19% revenue growth to $64.5 million in 2011 from $54.2 million in 2010, and forecasts at least 20% growth in 2012. However, net profit fell to $6.4 million ($0.48 per share) from $7.7 million.
Oridion is currently operating under an US Food and Drug Administration (FDA) import alert for its infant neonatal intubated carbon dioxide sampling lines, due to quality and regulatory issues. In January, the import alert was lifted on Oridion's other products, and the company says that deliveries are back to normal.
Oridion president and CEO Alan Adler said, “Being part of Covidien will give Oridion very important operational and strategic benefits. In particular, it will greatly expand the sales reach of our products through Covidien’s potent sales channels. This should allow for an even more rapid increase in the penetration of our patient monitoring solutions in our current and planned new clinical environments."
Covidien president Respiratory & Monitoring Systems Robert White said, “The acquisition of Oridion Systems adds a key monitoring technology to the Covidien portfolio. Oridion’s products and carbon dioxide technology are excellent complements to the Company’s current portfolio of pulse oximeters and monitoring products, enabling us to offer a complete portfolio of solutions to monitor respiratory function for patients around the world."
Oridion's share price on the Swiss Bourse closed at CHF 12 yesterday, giving a market cap of CHF 159 million.
Published by Globes [online], Israel business news - www.globes-online.com - on April 5, 2012
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