Itamar Medical, a Caesarea-based medical device and digital health company focused on solutions for diagnosing sleep apnea, also announced on Monday that it was acquired by Zoll Medical Corporation, a major US manufacturer of critical care devices and systems, for $538m.
Under the terms of the agreement, Zoll Medical will acquire all outstanding ordinary shares of Itamar Medical for $31 per American Depository Share (ADS), or $1.03 (equivalent to approximately NIS 3.31) per ordinary share, in cash. The price represents a premium of 50.2% over the price of Itamar Medical’s ADS on the Nasdaq Stock Market as of last Friday.
Shares of Itamar on the Tel Aviv Stock Exchange rose by 48.8% to NIS 321.10 on the news. The company’s Nasdaq-traded ADR was up 45.8% to $30.10 in early morning trading in New York.
Itamar Medical is focused on the development and commercialization of non-invasive medical devices and solutions to aid in the diagnosis of respiratory sleep disorders. The company’s WatchPAT Home Sleep Apnea Device is an FDA-cleared sleep apnea diagnosis program for patients and healthcare professionals.
Itamar Medical was founded in 1997. Founder and chairman Giora Yaron named the company after his brother, who died as a soldier during the 1973 Yom Kippur War.
Itamar Medical’s main R&D and production operations will continue at its current location in Caesarea, where it employs 250 workers.
“Zoll Medical is committed to improving outcomes for underserved patients suffering from serious cardiopulmonary conditions,” said CEO Jon Rennert. “It is currently estimated that 60% of cardiovascular patients suffer from some form of sleep apnea, and the majority of these patients go undiagnosed. The combination of Zoll Medical and Itamar Medical will help more patients receive diagnosis and treatment for sleep-disordered breathing.
“We look forward to helping strengthen the collaboration between the worlds of cardiology and sleep medicine.”
Zoll Medical is owned by Japanese holding company Asahi Kasei, which acquired it in 2012. The company previously acquired Kfar Sava-based Kyma Medical Technologies for $35m. in 2015.