Global medical technology company MGC Diagnostics has signed a letter of intent to acquire Medisoft, a Belgium-based cardio-respiratory diagnostics products manufacturer.

Under the terms of proposed agreement, all the outstanding shares of Medisoft stock would be acquired by MGC Diagnostics.

According to MGC Diagnostics, this acquisition would significantly expand the company’s cardio-respiratory diagnostics business internationally by adding new products, manufacturing and distribution capabilities, and establishing the company as a leader in the cardio-respiratory market.

MGC Diagnostics CEO and president Dr Gregg Lehman noted the acquisition of Medisoft is well-aligned with the company’s strategic plan.

"Together, MGC Diagnostics and Medisoft would have the R&D, sales, marketing and manufacturing resources to drive innovation and growth in major global markets," Dr Lehman added.

MGC Diagnostics and Medisoft share complementary product lines, technologies, operations and geographic markets. The acquisition would enable MGC Diagnostics to increase global footprint, establish direct global operations and enhance product and intellectual property portfolio.

Subject to completion of confirmatory due diligence, negotiation and execution of a definitive agreement and customary closing conditions, the acquisition is expected to be completed by 31 May 2014. This transaction is not subject to MGC Diagnostics shareholder approval.

MGC Diagnostics Corporation plans to finance the transaction from a combination of its current cash and cash equivalents, working capital and a bank credit facility.