Bittium Technologies Ltd, a subsidiary of Bittium Corporation has today acquired the ownership in Mega Electronics Ltd, specialized in healthcare technology, by purchasing 100 per cent of the shares in Remega Ltd. Mega Electronics Ltd is a fully owned subsidiary of Remega Ltd. Mega Electronics Ltd owns 28.2 per cent of the shares in MegaKoto Ltd, a company specialized in healthcare services, and has signed binding share purchase agreements to acquire 100 per cent of the shares in MegaKoto Ltd. The acquisition of the shares in MegaKoto Ltd will be completed as soon as possible.
Mega Electronics Ltd, founded in 1983, is a Finnish ISO13485 certified medical device manufacturing company. The company is specialized in biosignal measuring for cardiology, neurology, rehabilitation, occupational health and sports medicine. MegaKoto Ltd provides comprehensive arrhythmia monitoring services for its customers such as primary care centers, private clinics and hospitals.
The pro forma net sales of Remega group and MegaKoto Ltd was approximately EUR 3.1 million in 2015 and pro forma operating profit was approximately EUR 0.2 million. According to the preliminary and unaudited accounts, the pro forma net sales of the acquired companies in January-October 2016 was EUR 3.0 million and pro forma operating profit EUR 0.4 million. The net sales in January-October 2016 grew by 58 per cent compared to corresponding period in 2015. The companies employ altogether 28 persons and are located in Kuopio, Finland.
The debt free cash purchase price of the share acquisition, including the purchase price of MegaKoto shares, is EUR 8.0 million, which will be adjusted based on the level of cash, debt and networking capital of the acquired companies as of completion of the acquisition. In addition to the aforementioned purchase price, an additional purchase price, capped at EUR 1.0 million, is payable upon the achievement of certain financial performance targets for the acquired business between January 1, 2017 and December 31, 2018. The potential additional purchase price will be paid in cash after achieving the goals. The acquisition has no significant impact on Bittium's balance sheet, operating result and financial position, and it will not have an effect on Bittium’s financial outlook for the year 2016 published on November 3, 2016 in the Interim Report January-September 2016. Remega group and MegaKoto Ltd will be reported as part of Bittium Corporation from the time of acquisition onwards.
With this acquisition Bittium will get the ownership of Faros product family, focused on heart remote monitoring, NeurOne product focusing on measuring the electrical activity of brain, and BrainStatus, a disposable quick analysis headband used in emergency and intensive primary care to diagnose for example epileptic seizures and brain stroke, and other healthcare technology products. Faros devices are EU medical device directive class CE class IIa and USA FDA 510 (k) registered medical devices. MegaKoto Ltd is a private provider of healthcare services approved by the Finnish National Supervisory Authority for Welfare and Health having more than 70 health centers and private clinics using its heart monitoring Kardiolog.fi service.
“Bittium has over 30 years of experience in mobile radio technology and the acquisition today expands our technology competence to healthcare technology, where mobile solutions are being increasingly used in patient monitoring. The products and services of Mega Electronics and MegaKoto and their strong experience in biosignal measurement technology strengthens Bittium’s offering for these markets. Together we are able to provide for the healthcare market global leading advanced solutions for patient care both in the hospitals as well as in home care”, says Hannu Huttunen, CEO of Bittium Corporation.
”This acquisition expands Mega Electronics’ competence in mobile technology, giving us more resources to use and improves our potential to respond to the needs in the growing market. Bittium’s strong R&D competence combined with our understanding of the industry and our customer base strengthens the competitiveness of our products”, states Arto Remes, CEO and largest shareholder of Remega Ltd and Mega Electronics Ltd.