Profound Medical to pay $6m for Philips ’ Sonalleve MR-HIFU biz

Profound Medical (TSX:PRN) said today that it agreed to put up about $6 million worth of its own shares to acquire the Sonalleve MR-HIFU business from Royal Philips (NYSE:PHG). Toronto-based Profound said the deal calls for it to put up 7.4 million shares at 84.9¢ (C$1.10) apiece, representing a 22% premium over its closing price yesterday. The total deal value is $6.3 million (C$8.1 million) The agreement also has earn-outs pegged to future revenues of 5% to 7% of Sonnalleve sales through 2020, the company said. Philips, which already sells Profound’s Tulsa-Pro prostate ablation system, also pledged to distribute the Sonalleve device which is mostly used to ablate uterine fibroids. “This agreement with Philips is in keeping with our commitment to invest in the powerful combination of real-time MR-guidance as the imaging platform and ultrasound as the energy source for delivering non-invasive ablative technology to clinicians,” Profound CEO Dr. Arun Menawat said in prepared remarks. “From a commercial perspective, taking this technology platform approach not only benefits Profound by significantly increasing our total opportunity size, but also benefits hospital customers by providing them with the ability to better utilize their MR system assets. In addition to the immediate contribution this transaction will make to our revenue base, we believe that it will also help accelerate our growth going forward.” “We strive to provide clinicia...
Source: Mass Device - Category: Medical Devices Authors: Tags: Imaging Mergers & Acquisitions Wall Street Beat Women's Health Profound Medical Inc. royalphilips Source Type: news