Natus Buys Private Diagnostic Device

Medical device maker Natus Medical Inc says it will buy privately-held Alpine Biomed Holdings Corp, which makes specialty diagnostic devices, for $43.2 million in cash, excluding the direct costs of the deal.

The deal, which is expected to close on Monday, will add to Natus' earnings in the fourth quarter, excluding restructuring and other one-time charges.

Natus also expects that in 2010 it would return to the revenue and earnings growth that it achieved prior to the economic slowdown.

Fountain Valley, CA-based Alpine Biomed, which was mostly owned by private equity firm Water Street Healthcare Partners, makes devices for the diagnosis of neurological disorders.

"Approximately two-thirds of Alpines revenue is from outside the United States, and Alpine is the market leader in electromyography diagnostics, or EMG, in Europe with its well established Keypoint product line," Natus Chief Executive Jim Hawkins said in a statement.

"We plan to leverage our combined direct sales channels in the United States and Canada and provide new distribution for Stellate and Alpine products through the Natus international distribution organization," Hawkins said.