US-based Natus Medical has signed an agreement to acquire Denmark-based GN Otometrics from GN Store Nord for $145m.

Otometrics produces hearing diagnostics and balance assessment equipment, as well as disposables and software products.

The company offers computer-based audiological, otoneurologic, vestibular instrumentation and sound rooms for hearing and balance care professionals across the globe.

Otometrics markets its product under different brands such as Aurical, ICS and Madsen.

With around $110m annual revenue, the company distributes its products in around 86 countries.

The deal is expected to complete by the end of this year.

Natus also signed a $150m revolving credit agreement with JP Morgan Chase and Citibank. The company will use offshore cash and proceeds from this credit line to fund the deal.

Natus president and CEO Jim Hawkins said: “With the addition of Otometrics, we anticipate Natus revenue in 2017 will reach $500 million, a major milestone for the company. 

“We expect Otometrics to be accretive to our 2017 earnings with a non-GAAP contribution operating margin goal for the year of 10% and a 2018 goal of 20%.

"We are committed to bringing our Seattle design and manufacturing systems up to required regulatory standards and we have placed a voluntary ship hold on certain products that are produced in Seattle.”

Natus offers healthcare products and services used in the screening, detection, treatment, monitoring and tracking of common medical ailments in newborn care, hearing impairment, neurological dysfunction, epilepsy, sleep disorders, and balance and mobility disorders.

Image: Natus Medical to acquire Denmark-based GN Otometrics. Photo: courtesy of / stockimages.