Given Imaging Ltd announced that it has signed a definitive agreement to acquire privately-held Sierra Scientific Instruments (Sierra Scientific) for $35 million in cash. Sierra Scientific is a provider of specialty diagnostic devices for the gastrointestinal (GI) tract. It will become a wholly-owned subsidiary of the Given Imaging. Given Imaging is acquiring Sierra Scientific from Water Street Healthcare Partners.
The deal is expected to close and become effective on or about April 1, 2010. Sierra Scientific is profitable, has a debt-free balance sheet and recorded unaudited revenues of approximately $18 million in 2009. Coupled with Given Imaging’s existing Bravo® pH Monitoring System, the acquisition positions Given Imaging in the esophageal diagnostics market, of which the 2009 served market was estimated at $60 million. Given Imaging will revise its 2010 revenue and EPS guidance, which it plans to disclose in its first quarter 2010 financial results scheduled for May.