Health care equipment, and medical technology systems manufacturer Hillrom has signed a definitive agreement to acquire Breathe Technologies for a cash consideration of $130m (£107m).
Breathe Technologies was founded in 2005 and is engaged in developing and manufacturing of patented wearable, non-invasive ventilation technology that supports improved patient mobility.
Located in Irvine, California, with an annual revenue of approximately $10m (£8m), Breathe Technologies is aimed at providing healthier living and addressing unmet clinical and economic needs in respiratory care.
The Life2000 Ventilation System can be used in home and critical-care settings
The Life2000 Ventilation System is a volume-control, wearable, non-invasive mechanical ventilation system developed by Breathe Technologies.
Life2000 Ventilation System can be used for a wide range of reimbursable conditions in the home and critical-care settings, including COPD, interstitial lung disease, restrictive thoracic disorder and post-lung-transplant rehab.
The wearable Life2000 Ventilator is developed based on the stationary Life2000 Compressor to provide freedom of range inside the home and can be used outside the home with an alternate pressure source.
The Life2000 Ventilation System has received 510(k) approval from the US Food and Drug Administration (FDA). Through the transaction, Breath Technologies is expected to benefit from the $30m (£24m) of net operating losses.
The company is currently dealing with respiratory care products as front line care business, including The Vest, Monarch Airway Clearance System, The MetaNeb System and VitalCough.
Hillrom president and CEO John Groetelaars said: “The acquisition of a highly differentiated, wearable non-invasive ventilation technology provides an exciting growth platform that utilizes our direct Respiratory Care commercial channel and business model.
“This transaction represents another example of our plan to strategically deploy capital with a disciplined approach toward higher-growth and higher-margin businesses by expanding into the disruptive new category of non-invasive ventilation.”
Hillrom is expected to complete the transaction during the fourth quarter of fiscal 2019, subject to the customary closing conditions.