ResMed Buys Irish Medical Technology CompanyThursday, July 7, 2011
San Diego-based ResMed Inc., a maker of respiratory masks and related assisted breathing devices, said July 6 that it acquired BiancaMed Ltd., an Irish medical technology company.
ResMed purchased all of BiancaMed’s outstanding shares with cash, the company said, in a statement. A spokeswoman for ResMed declined to disclose the dollar value of the purchase, but characterized it as “a significant premium” over the 11 million euros (equivalent to about $15.8 million U.S. dollars) that had been invested in BiancaMed.
Still, for ResMed — a company with more than $1 billion in revenues last year — the total cost of the acquisition is “not material,” the spokeswoman said. ResMed is the sixth largest public company in San Diego.
BiancaMed has developed and is marketing a touch-free device that measures sleep and breathing. The product, called SleepMinder, uses sophisticated biometric software that senses motion. “It’s very interesting technology that we believe can have a range of applications,” the ResMed spokeswoman said. In addition to monitoring sleep, ResMed hopes the product will also be able to monitor heart problems and chronic obstructive pulmonary disease. “It’s all part of ResMed’s plan to break out beyond sleep (disordered-breathing treatments).”
BiancaMed’s 29 employees will remain in Ireland, and the company will become part of ResMed’s newly-created Ventures and Initiatives unit.
ResMed estimates the acquisition will dilute its earnings per share by approximately 4 cents in fiscal year 2012.
ResMed shares, which trade on the New York Stock Exchange under the symbol RMD, closed July 6 at $30.99, down slightly from the previous day’s closing price.
— Kelly Quigley