Jomed sets sights on US market
The Swiss medical technology company, Jomed, is to buy EndoSonics of California in a bid to gain a foothold in the United States.
Jomed will fork out SFr349 million ($205 million) for its new acquisition, with most of the funding coming from a new share offer on the Swiss stock exchange.
Jomed expects to raise SFr255 million through an issue of new stock, with the balance of the purchase price coming from cash reserves.
EndoSonics is a leading developer and manufacturer of products used in ultrasound technology. The California-based group had sales of $48 million (SFr82 million) in 40 countries in 1999.
“EndoSonics products represent an excellent complement to Jomeds’s product range globally,” said Tor Peters, President and Chief Executive of Jomed.
He added that the purchase would help Jomed “gain access to an established US sales force, helping us to penetrate the large US market faster and more effectively than would otherwise be the case”.
Following the merger Jomed will have a staff of nearly 1,000 and annualized combined sales in excess of SFr169 million.
by Tom O’Brien
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