Natus Medical to Go Private After Acquisition

Following a $1.2 billion acquisition deal, Natus Medical will once again be a private company.

After about 20 years as a publicly traded entity, the Wisconsin-based medical device and software company has agreed to a deal with ArchiMed, a French healthcare-focused private equity firm. The acquisition is pending shareholder approval and regulatory requirements and is expected to be finalized in the third quarter of 2022.

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“ArchiMed’s mix of operational, medical, scientific, and financial expertise will help us continue our mission to serve our customers while delivering immediate value to shareholders,” Natus Chief Executive Officer Thomas Sullivan said in a statement.

The 35-year-old company produces devices that help people with disorders of the brain and central nervous system. It also has developed technology for newborn and hearing care.

Under the terms of the deal, Natus shareholders would receive $33.50 in cash for each of their shares of common stock. ArchiMed will fund the acquisition with equity financing from its affiliated funds and debt financing. Natus’ stock price hadn’t crossed $33 since early 2020.

In advance of its May 5 first-quarter earnings report, the company showed revenues of $119.8 million, up about 4% from the same period last year. It ended the quarter with no debt and $84 million in cash, even after paying $3.4 million in supply chain costs caused by semiconductor demand.