Greatbatch Buying NeuroNexus - Analyst Blog
February 21 2012 - 1:09PM
Zacks
Medical technology company Greatbatch (GB) is
acquiring Michigan-based implantable medical device design firm
NeuroNexus Technologies for roughly $12 million. The deal includes
assumption of debt and future considerations (undisclosed).
NeuroNexus, founded in 2004, specializes in high-value neural
interface technology, components and systems for neuroscience and
clinical markets. The entity possesses a vast portfolio of
intellectual property, core technologies and capabilities to
facilitate the development of innovative neural interface devices
across a broad range of functions including neuromodulation,
optical stimulation and targeted drug delivery applications.
The acquisition is expected to boost Greatbatch’s foothold
across cardiovascular and neuromodulation markets. The pooling of
NeuroNexus’ technologies and Greatbatch’s capabilities will enable
the combined entity to provide new world-class research products
and systems to neuroscientists across the globe. Greatbatch expects
the acquisition to be non-dilutive to its adjusted operating
earnings in 2012.
Greatbatch is a leading producer and supplier of batteries,
capacitors and components used in implantable medical devices. The
company’s top customers include Boston Scientific
(BSX), Johnson & Johnson (JNJ),
Medtronic (MDT) and St. Jude
(STJ).
Greatbatch has been acquiring complementary businesses over the
last few years to boost sales. The company, in late 2011, bought
Oregon-based battery supplier Micro Power Electronics. The
acquisition is expected to diversify Greatbatch’s revenues by
broadening its foothold in the portable medical battery market and
stimulating growth in other key areas.
Greatbatch continues to invest in developing medical devices for
its major OEM clients. The company’s pipeline is healthy with a
number of products currently under development that are expected to
support growth in the long run.
We feel that operating results will be supported by strength at
the company’s orthopedic business and strategic investments.
Greatbatch is expected to report its fourth-quarter 2011 results on
February 23. We currently have an Outperform recommendation on the
stock.
BOSTON SCIENTIF (BSX): Free Stock Analysis Report
GREATBATCH INC (GB): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
MEDTRONIC (MDT): Free Stock Analysis Report
ST JUDE MEDICAL (STJ): Free Stock Analysis Report
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