Edwards Lifesciences is making a move to acquire Cas Medical Systems for about $100 million. Branford, CT-based Cas Medical specializes in the non-invasive monitoring of tissue oxygenation in the brain.
Edwards said it has a pending 510(k) clearance in the U.S. for a smart cable and software module, which enables compatibility between Cas Medical’s FORE-SIGHT sensor and the HemoSphere advanced hemodynamic monitoring platform. This technology was developed as a result of a collaboration between Edwards and Cas Medical, and received a CE Mark.
Cas Medical’s FORE-SIGHT could continue to boost HemoSphere, which pushed growth in the firm’s critical care unit during 4Q18.
“In critical care, sales for the quarter were $178 million and grew 10% on an underlying basis,” said Edwards’ CEO Michael Mussallem, according to a transcript from Seeking Alpha. “For the full year, underlying sales grew 11%. This quarter's performance was strong across all of our critical care product categories, led by the healthy demand for HemoSphere and the continued growth of enhanced recovery.
As a condition to the closing of the transaction, each holder of Cas Medical’s Series A Convertible Preferred Stock or Series A Exchangeable Preferred Stock will agree to convert such stock into shares of Cas Medical’s Common Stock, and upon the closing, those holders will be entitled to receive the transaction consideration as holders of Common Stock. The acquisition is expected to close in 2Q19.
"We are pleased with this opportunity to bring together Cas Medical’s expertise in brain and tissue oxygenation monitoring with Edwards' long history of leadership in hemodynamic monitoring," Thomas Patton, president and CEO of Cas Medical, said in a release. "We are confident that the combination of these technologies will result in an important measurement tool for physicians that can empower them to improve care."