ArchiMed, a French investment firm focused on healthcare sector, has signed an agreement to acquire Natus Medical for around $1.2bn.

Natus is a major player in neurodiagnostics, pediatric retinal imaging, and infant hearing screening.

It provides medical device solutions for screening, diagnosis, and treatment of disorders related to the brain, neural pathways, and eight sensory nervous systems.

The company offers hardware, software and algorithms, and consumables that enable acquisition and monitoring of physiological signals, and the body’s response.

Under the terms of the merger agreement, Natus shareholders are eligible to receive $33.50 in cash for each share of Natus common stock held.

According to the medical device company, the purchase price indicates a 29% premium to the closing price of shares in its common stock as of 14 April 2022.

Natus Medical president and chief executive officer Thomas J Sullivan said: “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.”

The company may solicit proposals from other parties for a period of 30 days, and can respond to any unsolicited offers that could be a superior proposal.

Also, it holds the right to scrap the current merger deal with ArchiMed to sign a better proposal, through the payment of a customary termination fee.

Natus chairman Joshua H Levine said: “The sale of Natus to ArchiMed will provide our shareholders with immediate and substantial cash value, as well as a compelling premium, and the Board has unanimously agreed that this transaction is in the best interests of our shareholders.”

The transaction is anticipated to be completed in the third quarter of this year, subject to customary closing conditions, including regulatory approvals, and Natus shareholders.

Upon closing of the merger, Natus will become a private company and its shares will no longer be listed on any public market.

Stifel served as financial advisor, and Davis Polk & Wardwell as legal advisor to Natus on the transaction.