- Acquisition Expands Neurology Product Lines and Adds Growth
Opportunities
- Expected to be Accretive Immediately
SAN CARLOS, Calif.--(BUSINESS WIRE)--Sept. 3, 2008--Natus Medical
Incorporated (Nasdaq:BABY) today announced that it has agreed to
acquire privately held NeuroCom International, Inc. NeuroCom, based in
Clackamas, Oregon, develops and markets computerized systems for the
assessment and rehabilitation of balance and mobility disorders. The
acquisition adds to Natus' growth opportunities by broadening its
product offerings in the Company's neurology business.
Natus agreed to acquire NeuroCom for a cash price of $18 million.
NeuroCom reported revenue of $11.3 million in the twelve months ended
June 30, 2008, and is expected to have cash of at least $3.4 million
as of the closing. The Company expects to complete the acquisition in
early October 2008.
Natus believes the acquisition will be immediately accretive to
earnings, excluding associated one-time charges.
"This acquisition expands our neurology footprint into the growing
balance and mobility assessment market. We are very excited about the
growth opportunities in this developing field and we believe NeuroCom
products will become the standard of care in this emerging field,"
said Jim Hawkins, President and Chief Executive Officer of Natus. "We
believe we can leverage their broad patent portfolio and market
leading position through our worldwide sales and marketing channels."
"NeuroCom has a history of strong product innovation, being the
first company to develop and sell a turn-key system into the balance
and mobility market, while at the same time generating consistent
profitability. We believe this acquisition affirms our position as the
market leader in neurology and brings Natus one-step closer to
achieving our stated goal of growing revenue to a $250 million annual
run-rate by the end of 2008," Hawkins added.
Dr. Lewis Nashner, President and Chief Executive Officer of
NeuroCom said, "We are pleased to become a part of the growing Natus
team and believe the expanded opportunities provided through this
acquisition will accelerate sales of our technologies into the growing
global marketplace. We are also pleased that Natus plans to retain our
operations as well as our established brands and products."
2008 Guidance
Natus intends to update its revenue and earnings guidance for the
fourth quarter and full year 2008 when it releases financial results
for its third quarter ending September 30, 2008.
Conference Call
Natus has scheduled an investment-community conference call later
today to discuss this announcement beginning at 11:00 a.m. Eastern
Time (8:00 a.m. Pacific Time). Individuals interested in listening to
the conference call may do so by dialing (866) 314-9013 for domestic
callers, or (617) 213-8053 for international callers, and entering
reservation code 17571348. A telephone replay will be available for 48
hours following the conclusion of the call by dialing (888) 286-8010
for domestic callers, or (617) 801-6888 for international callers, and
entering reservation code 69338665.
The conference call also will be available real-time via the
Internet at http://investor.natus.com, and a recording of the call
will be available on the Company's Web site for 90 days following the
completion of the call.
About NeuroCom International, Inc.
Founded in 1984, NeuroCom International, Inc. is a world leader in
the development of computerized tools for the assessment and
rehabilitation of patients with balance and mobility disorders. This
leadership, maintained through a commitment to products with strong
scientific/clinical justification, extends to the best product support
in the industry, and continuous educational support related to
clinical applications and business opportunities.
Following the disablement model outlined by the World Health
Organization, NeuroCom assessment protocols provide clinicians with
specific diagnostic information related to underlying impairments and
the resultant functional limitations, complementing traditional
site-of-lesion diagnostic information.
NeuroCom initially developed the EquiTest Computerized Dynamic
Posturography, with NASA and NIH support. Today, NeuroCom's mission is
to advance healthcare in the areas of chronic balance, dizziness, and
vestibular disorders, and other balance dysfunction and mobility
problems related to neurological conditions, diseases, aging, and
injuries.
These systems are used around the globe in a broad spectrum of
medical disciplines including otolaryngology, neurology, physiatry,
orthopedics, sports medicine, geriatrics and physical rehabilitation,
and are used in the management strategies of a wide range of acute and
chronic disorders. There are currently more than one thousand medical
and academic institutions utilizing NeuroCom technology in the United
States and abroad.
Additional information about NeuroCom can be found at
www.resourcesonbalance.com.
About Natus Medical Incorporated
Natus is a leading provider of healthcare products used for the
screening, detection, treatment, monitoring and tracking of common
medical ailments such as hearing impairment, neurological dysfunction,
epilepsy, sleep disorders, and newborn care. Product offerings include
computerized neurodiagnostic systems for audiology, neurology,
polysomnography, and neonatology, as well as newborn care products
such as hearing screening systems, phototherapy devices for the
treatment of newborn jaundice, head-cooling products for the treatment
of brain injury in newborns, and software systems for managing and
tracking disorders and diseases for public health laboratories.
Additional information about Natus Medical can be found at
www.natus.com.
This press release contains forward-looking statements as defined
in the Private Securities Litigation Reform Act of 1995, particularly
statements regarding the expectations, beliefs, plans, intentions and
strategies of Natus. These forward-looking statements include, but are
not limited to, statements regarding future revenue and earnings
growth, and anticipated benefits of the acquisition. These statements
relate to future events or Natus' future financial performance or
results, and involve known and unknown risks, uncertainties and other
factors that may cause actual results, levels of activity,
performance, or achievements to differ materially from those expressed
or implied by the forward-looking statements. Forward-looking
statements are only predictions and the actual events or results may
differ materially. Natus cannot provide any assurance that its future
results or the results implied by the forward-looking statements will
meet expectations. Our future results could differ materially due to a
number of factors, including the effects of competition, the demand
for our products and services, our ability to expand our sales in
international markets, our ability to maintain current sales levels in
a mature domestic market, our ability to control costs, and risks
associated with bringing new products to market and integrating
acquired businesses. Natus disclaims any obligation to update
information contained in any forward-looking statement.
More information about potential risk factors that could affect
the business and financial results of Natus is included in Natus'
annual report on Form 10-K for the year ended December 31, 2007, and
its quarterly reports on Form 10-Q, and in other reports filed from
time to time by Natus with the U.S. Securities and Exchange
Commission.
CONTACT: Natus Medical Incorporated
Chief Financial Officer
Steven J. Murphy, 650-802-0400
InvestorRelations@Natus.com
SOURCE: Natus Medical Incorporated
