MGC Diagnostics to acquire Medisoft
MGC Diagnostics, a global medical technologies company, has acquired Medisoft, a Belgium-based, privately held manufacturer of cardiorespiratory diagnostic products. The company plans to close the transaction Aug. 1. Medisoft has served the cardiorespiratory diagnostics market since 1979 and had 2013 revenues of approximately $6.4 million.
MGC Diagnostics will acquire Medisoft for $7.9 million in cash and three-year warrants to purchase $1.4 million of MGCD common stock. Of the cash, $5.6 million will be paid to Medisoft shareholders and $2.3 million will be used to pay off existing Medisoft debt.
With the majority of Medisoft revenues originating outside the U.S., Medisoft will advance MGC Diagnostics' strategy to augment its current product offerings, develop established markets, expand its presence in emerging markets, enhance customer support initiatives and meet the competitive demands of the global market.
MGC's acquisition of Medisoft and its subsidiaries in France, Italy and Germany will provide MGC Diagnostics scale, presence and support to its established distribution partnerships in these countries
Todd M. Austin, MGC Diagnostics CEO, said, "Together, MGC Diagnostics and Medisoft will have comprehensive R&D, sales, marketing and manufacturing capabilities to lead the market in innovative products, services and growth.”