Danaher in talks to buy Israel's ASI for $30m

Danaher equipment

Danaher has signed a letter of intent for the acquisition of the company, which sells computer imaging solutions for laboratories.

US medical equipment firm Danaher has signed a letter of intent (LOI) for the acquisition of Israeli company Applied Spectral Imaging (ASI) for $30 million (NIS 110 million), sources inform "Globes." Founded in 1993, ASI changed its business focus in 2000. The company currently develops and sells computer imaging solutions for laboratories. ASI markets a range of software and hardware products designed as additions to manual microscopes in order to improve them and automate the work of genetic testers. ASI's products have US marketing approval from the Food and Drug Administration (FDA).

ASI was founded as a spinoff from CI, which dealt in military equipment and conductors, and focused on spectral imaging technology. In a previous "Globes" interview, CEO Limor Shiposh explained, "This product has changed genetic research, but is remains a research product, and is not used in real diagnostic situations, because its price and the amount of work required kept it from being competitive enough." The company therefore changed direction in 2000 by deciding to focus on understanding the needs of lab personnel.

Most of the company's current business is in products designed to replace manual testing of samples under a microscope, digital photography, and computer processing of images. In 2010, the company considered an IPO on the Tel Aviv Stock Exchange (TASE), but did not go through with it. According to figures from the IVC research company, ASI has raised over $26 million since it was founded. Its most recent financing round took place in 2000 at a company value of $60 million.

Danaher is listed on the New York Stock Exchange, with a market cap of $62.3 billion. Danaher recently announced a significant strategic change, in which it is splitting off some of its business into another company, while focusing exclusively on scientific technology. The split-off is scheduled to take place by the end of the year, with Danaher divesting itself of its industrial business unrelated to science (such as its automation and sensors business).

Danaher will continue dealing in diagnostics, life sciences, dental treatment, and water quality. Danaher has made many acquisitions over the years, but not in Israel. According to company figures, it has acquired more than 400 companies since 1984. "Mergers and acquisitions are a significant part of Danaher's growth strategy," the company website states. One recent major acquisition by the company was Pall Corporation, which provides filtration and purification solutions, in a $13.8 billion deal.

Danaher's 2014 pro forma revenue, including Pall and the business that will not be split off, totaled $16.5 billion: 28% from diagnostics, 18% from dental business, 15% from the life sciences, and 12% from water quality. In diagnostics, Danaher offers products to hospitals and laboratories, biopsy devices, and point of care - manual devices that facilitate rapid diagnoses of blood samples in clinics.

Published by Globes [online], Israel business news - www.globes-online.com - on July 14, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

Danaher equipment
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