Opto Circuits to buy US’ Criticare

MUMBAI: Opto Circuits India, a medical electronics company, on Monday said it plans to fully acquire US- based Criticare Systems Inc for about $68 million. Criticare Systems manufactures vital sign monitors, anesthesia monitors, and pulse oximeters.

Opto Circuits plans to launch a tender offer to fully acquire the shares of Criticare Systems, which is a listed entity. Opto’s offer price represents a premium of 19% to the closing price of Criticare common stock on Friday.

Criticare also sells modules and stand-alone monitors worldwide to original equipment manufacturers. Its vital signs and gas monitoring instruments and related noninvasive sensors used to monitor patients in many healthcare environments. It exports to markets like Europe, Latin America and the Pacific Rim countries.

As of year ending June 2007, the company reported revenues of $31 million, flat over previous year, and net profit of $0.3 million. Criticare’s core operations are loss making, with relief coming from forex gains and interest income which has put the business in green.

Vinod Ramnani, chairman and managing director, Opto Circuits, said: “This acquisition will help Opto expand its patient monitoring business and will further fortify its presence in the US. This transaction will also open many new markets for Criticare’s products.”

About three months back, Criticare was fined about half a million dollars for exporting medical equipment through the UK to Iran in violation of the US export administration norms.

g_rabin@dnaindia.net