Laboratory instruments and solutions provider Tecan Group has agreed to acquire US-based medical devices and life sciences instruments manufacturer Paramit for around $1bn.
The acquisition is expected to enhance Paramit’s capabilities and presence in life sciences and in-vitro diagnostics (IVD).
Paramit has developed FDA-accepted and CLIA-waived medical devices such as surgical instruments, surgical robotics, point of care and personal testing devices, diagnostic systems and drug delivery devices.
The acquisition of Paramit will enable Tecan to boost its entry into medical devices, as well as expand the combined platform’s total addressable market to serve its customers across the world.
Paramit CEO Billoo Rataul said: “Combining Paramit’s leading design and manufacturing expertise with Tecan’s strengths is the next logical step for our growing business.
“Becoming part of the Tecan Group will take our industry-leading offering to new customers in expanding markets.”
The deal will allow to establish a combined global platform with advanced design, development and manufacturing capabilities and scale to offer support to customers in the growing segments of healthcare.
With the acquisition, Tecan is expected to enhance its service offering for its existing OEM customer base. Paramit will also be able to leverage Tecan’s commercial channels to further expand its reach in the European and Asian markets such as China.
Tecan CEO Dr Achim von Leoprechting said: “We are delighted to bring the Paramit team into the Tecan Group.
“The company’s extensive OEM offering and its state-of-the-art development and manufacturing facilities will strengthen our market reach and enable us to more effectively meet customer needs, scaling innovation from research all the way to the clinic.”
Subject to customary closing conditions, the deal is expected to be completed in the coming months.
Morgan Stanley served as financial advisor for Paramit, while Schiff Hardin acted as its legal counsel.
Based in Silicon Valley, Paramit has operations in the US, Europe, and Malaysia. Since 2011, it has been privately held by Altaris Capital Partners, a healthcare-dedicated investment firm.
In November last year, Paramit acquired Emphysys, a technology development firm specialising in complex systems and products for the medical device and life sciences industries.
