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EU PE Firm Makes $1.2B Bid for US Medical Device Co.
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Shares of Natus Medical Inc. traded 29% higher after the company reported it agreed to be acquired by ArchiMed Group, a France-based private equity firm, for $33.50 per share in cash.

Medical device and diagnostic solutions provider Natus Medical Inc. (NTUS:NASDAQ), which develops medical device solutions allowing physicians to screen, diagnose and treat conditions affecting the brain, neural pathways and sensory nervous systems, today announced "it entered into a definitive agreement to be acquired by an affiliate of ArchiMed, a leading investment firm focused exclusively on the healthcare industry for approximately $1.2 billion."

The firm indicated that according to the terms of the agreement, Natus shareholders will receive $33.50 in cash for each share of Natus common stock owned and added that the offering price constitutes a premium of 29% above the company's closing share price on the previous trading day, Thursday, April 14, 2022.

Natus Medical's Chairman Joshua H. Levine stated, "The sale of Natus to ArchiMed will provide our shareholders with immediate and substantial cash value, as well as a compelling premium, and the Board has unanimously agreed that this transaction is in the best interests of our shareholders."

The company's President and CEO Thomas J. Sullivan commented, "Our nearly 1,400 Natus Teammates remain committed to advance the standard of care and improve outcomes and quality of life for patients affected by disorders of the brain, neural pathways, and eight sensory nervous systems…ArchiMed's mix of operational, medical, scientific and financial expertise will help us continue our mission to serve our customers while delivering immediate value to shareholders."

The report indicated that Natus Medical's Board of Directors has already unanimously approved the transaction which is expected to close in Q3/22, subject to approval by Natus shareholders, ordinary closing conditions and regulatory approvals. The firm noted that when the purchase is finalized Natus will become a private enterprise and its shares will no longer be traded publicly.

The agreement also allows for a 30-day "go-shop" provision for additional or superior offers. As such, the firm is permitted to solicit and consider alternative offers in some case through as late as May 22, 2022 (35 days).

The company reported some limited preliminary financial data for Q1/22 and advised that it expects to release its full Q1/22 results on Thursday, May 5th. The firm noted that due to the announced sale of the company it will not be providing any forward financial guidance.

Natus Medical stated that revenue in Q1/22 increased by 4.3% to $119.8 million, compared to $114.9 million in Q1/21. The company noted that during Q1/22 it incurred $3.4 million in extraordinary supply chain costs surrounding purchases of semiconductors. The firm noted that as of the end of Q1/22 it held $84 million in cash and had no debt on its balance sheet.

Natus Medical is a provider of healthcare solutions engineered to screen, diagnose and treat central nervous and sensory system disorders. The firm is based in Middleton, Wis. and its products are sold in more than 100 countries. The company stated that "it offers hardware, advanced software and algorithms and consumables that provide stimulus, acquire and monitor physiological signals and capture the body's response." The company solutions are designed for use in neurodiagnostics, pediatric retinal imaging and infant hearing screening. In addition, the company offers tools for hearing assessment including hearing instrument fitting, balance and intracranial pressure monitoring.

The ArchiMed Group is a trans-Atlantic healthcare specialized private equity investment firm. The company is headquartered in Lyon, France and has offices in the U.S. and across Europe. The company has made numerous investments in the areas of pharmaceuticals, life science tools and diagnostics, medical instruments, devices and technologies, healthtech and consumer health. The firm has invested in over 80 companies over the last 20 years with a combined value exceeding €50 billion.

Natus Medical began the day with a market cap of around $896.3 million with approximately 34.41 million shares outstanding and a short interest of about 3.1%. NTUS shares opened more than 28% higher today at $33.45 (+$7.40, +28.41%) over Thursday's $26.05 closing price and reached a new 52-week high price this morning of $33.93. The stock has traded today between $33.415 and $33.93 per share and is currently trading at $33.55 (+$7.50, +28.79%).

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