Natus Acquires Embla Systems - Analyst Blog
October 04 2011 - 12:34PM
Zacks
Natus Medical Inc. (BABY), a manufacturer of
multiple health care product lines, recently announced that it took
over Embla Systems LLC, a leading player in the R&D, production
and sale of devices used to diagnose sleep apnea.
Embla reported sales of about $30 million for the fiscal year
ended December 31, 2010. Natus purchased Embla’s outstanding shares
for $16.1 million, in cash, excluding the direct costs for taking
over the company.
In fact, Embla is the biggest company in the globe dedicated to
sleep diagnostics (home sleep testing and polysomnography or
“PSG”). It provides an array of sleep diagnostic solutions such as
three cutting-edge PSG solutions, namely REMbrandt, RemLogic and
Sandman, Embletta home sleep testing devices as well as the
Enterprise Sleep Business Management Systems. Embla’s range of
solutions improves the operations of sleep labs.
Natus forecasts that the takeover will be accretive to its
earnings per share in 2012, contributing 8 cents to adjusted
earnings per share. Adjusted earnings per share does not include
potential restructuring and extraordinary expenses connected with
the acquisition as well as amortization of intangible assets
acquired by the company.
According to Natus, the takeover of Embla reinforces its pivotal
role in diagnostic neurology offerings. Natus now assumes the
leading position in the global sleep diagnostic market with yearly
sales of almost $35 million. Furthermore, the company is also well
placed in overseas markets, since 40% of erstwhile Embla’s sales
originated outside the U.S.
Globally, over 100 million individuals are estimated to suffer
from obstructive sleep apnea. Due to a lack of awareness, more than
80% of the cases go undiagnosed. Sleep apnea is a sleep disorder
marked by unnatural gaps in breathing.
The disorder may be of three types: obstructive, central and
complex/mixed sleep apnea forming 84%, 0.4% and 15% of incidence,
respectively. Studies have revealed that about 1 in 15 Americans is
afflicted by at least a moderate form of this disorder.
Headquartered in Denver, Colorado, Embla Systems embarked on the
development of devices to detect sleep apnea in the mid 1990s.
Since then, it has developed a series of products that help sleep
labs diagnose the condition. The company is a market leader in
devices, in overseas markets, for conducting sleep studies at the
patient’s residence.
Natus Medical sells healthcare offerings utilized in the
detection, screening, treatment and tracking of frequently
occurring medical problems in such areas as neurological
dysfunction, sleep disorders, neonatal medical problems and hearing
impairment. The company competes with Johnson &
Johnson (JNJ) among others.
NATUS MEDICAL (BABY): Free Stock Analysis Report
JOHNSON & JOHNS (JNJ): Free Stock Analysis Report
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