Navamedic ASA has acquired Swedish medtech company Observe Medical International AB. The initial purchase price is NOK 35 million, with six additional payments dependent on set sales targets in the coming years.
Observe Medical has developed Sippi®, an automated, digital urine meter, for use in intensive care wards. The product was launched in March 2015 in the German and Nordic markets and has been well received by initial users, and a strong sales growth is expected. Sippi® saves time for health care personnel, while also improving accuracy and patient safety. Sippi® has been under development since 2009, and has received approval for hospital use in Europe and the United States.
Navamedic will acquire all outstanding shares of Observe Medical. The seller is the Danish venture fund Seed Capital and the founders of Observe Medical.
Lindahl has assisted Seed Capital in the sale. Lindahl's team consisted of Michael Smedeby (partner), Michael Edquist and Sofia Lysén.
NOK 35 million initial payment, NOK 25 million is a cash consideration, while NOK 10 million will be paid through the issue of new Navamedic shares. For the years 2016 to 2023, further compensation in the form of royalties will be paid to the former shareholders of Observe Medical. Finally, there are six milestone payments based on set sales targets for the product, which together can provide an additional NOK 125 million.
Navamedic aims at establishing OM's product line as the global niche leader, through building a network of distributors in key markets. The global intensive care capacity is more than 360,000 hospital beds. Germany is the largest single market in Europe, with 24,000 intensive care beds, and Sippi® was launched there earlier this year. Navamedic will continue the launch in other European markets and also eventually develop the business into other global markets.
For more information, please click here.
