Zynex has agreed to acquire laser-based, noninvasive patient monitoring technology provider Kestrel Labs in a deal valued at around $31m.
The deal includes the payment of $16m in cash, and up to $15m in Zynex common stock.
Kestrel Labs is involved in the research, development and commercialisation of new and nd innovative medical technologies.
The company mainly works to extend photoplethysmography to the measurement of additional blood analytes and hemodynamic parameters.
Kestrel Labs offers laser-based products, including multi-parameter pulse oximeter called NiCO CO-Oximeter and total haemoglobin oximeter called HemeOx to facilitate continuous arterial blood monitoring.
Both NiCO and HemeOx products are yet to receive market clearance from the FDA.
Zynex founder, chairman and CEO Thomas Sandgaard said: “We will begin integrating Kestrel Labs’ two main products into our existing monitoring portfolio and seek regulatory clearance.
“Kestrel Labs’ laser-based technology allows it to measure distinct parameters, including for the first time the ability to distinguish between hemoglobin bound to carbon monoxide (COHb) rather than to oxygen, which would lead to better quality of care.”
NiCO CO-Oximeter is a laser-based photoplethysmography patient monitoring technology designed to detect, measure and monitor four crucial species of haemoglobin, including O2Hb (oxygenated hemoglobin), RHb (reduced hemoglobin), COHb (carboxyhemoglobin), and metHb (methemoglobin).
Kestrel Labs’ technology can also be used for the measurement of O2Hb irrespective of skin pigmentation or COHb level.
HemeOx is suitable for the measurement of total hemoglobin (tHb) and oxygen saturation, two critical parameters that need invasive arterial blood sampling for measurement.
Kestrel Labs co-founder and former CEO Jonas Pologe said: “Zynex’s proven ability to commercialize products and grow profitably, combined with Zynex Monitoring Solutions’ portfolio of hospital monitoring products, create a clear road map for success.”
