Analogic Corporation
ALOG, enabling the world's medical imaging and aviation security
technology, announced today that it has signed an agreement to acquire
privately held Ultrasonix Medical Corporation based in Vancouver, Canada for
$83 million in cash. Ultrasonix is a supplier of advanced ultrasound systems
for point-of-care and general imaging applications with over 5,000 systems
installed worldwide. The purchase price paid to Ultrasonix shareholders will be
funded out of Analogic's available cash balance. The transaction is expected to
close in late February. Analogic expects that this business combination will be
neutral to EPS in Analogic's fiscal year 2013, excluding purchase accounting
adjustments and transaction related costs, but will become accretive in fiscal
year 2014. Further information on this transaction can be found on supplemental
presentation slides by clicking here or at http://investor.analogic.com.
Jim Green, Analogic president and CEO, commented, "Ultrasonix brings key
ultrasound technology and a direct distribution channel, complementary to our
own. This acquisition is an important step in executing our overall growth
strategy as we expand our direct ultrasound business into the fast growing
adjacent point-of-care ultrasound market. Ultrasonix also enables expanded
distribution into general imaging in emerging markets with advanced technology
to address diagnostic procedures and applications. This acquisition provides
significant revenue and operational synergies as well as provides scale to our
existing ultrasound business accelerating our growth in the future."
Green added, "In addition to all that Ultrasonix brings to us, Analogic brings
advanced technical prowess and expanded sales channel access to the Ultrasonix
portfolio."
The transaction brings together BK Medical and Ultrasonix, two of the world's
leading producers of mobile, procedure-driven, guided ultrasound technology.
Founded in 2000, Ultrasonix has a broad portfolio of mobile ultrasound products
with an established brand used primarily for point-of-care applications such as
emergency medicine and anesthesia in developed markets and general imaging in
emerging markets. Ultrasonix's audited revenue for the calendar year ended
December 31, 2011 was 34.5 million Canadian dollars, with positive operating
income.
Excluding the Ultrasonix acquisition, the Company confirmed its outlook for FY
2013, expecting upper single-digit organic revenue growth with 100 basis points
operating margin improvement over fiscal 2012.
Upcoming Investor Conferences
Analogic management will be presenting at two upcoming webcasted investor
conferences in January to discuss Analogic's strategy and elaborate further on
the acquisition of Ultrasonix. Jim Green will speak at the J.P. Morgan
Healthcare Conference on Thursday, January 10, at the Westin Saint Francis
Hotel in San Francisco. The 25-minute presentation and 25-minute Q&A session
are scheduled to begin at 10:30 a.m. PST. Jim will also speak at the Needham
Growth Conference on Tuesday, January 15, at the New York Palace Hotel in New
York City. The 20-minute presentation and 20-minute Q&A session are scheduled
to begin at 2:50 p.m. ET. Both the J.P. Morgan and Needham conference
presentations will be webcast live and can be accessed via our website at
http://investor.analogic.com.
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