Spacelabs Healthcare to acquire cardiac business from Ferraris Group

By Elaine Rigoli

Tampa, Fla., June 29 -Spacelabs Healthcare, Inc., a subsidiary of OSI Systems, Inc., has entered into a stock purchase agreement with Ferraris Group plc to acquire Del Mar Reynolds Ltd. and Del Mar Reynolds Medical, Inc., representing Ferraris' cardiac division.

Under the agreement, Spacelabs will pay Ferraris about £14 million, subject to an adjustment of plus or minus £1 million based upon revenue and EBITDA results for the companies for the 13-month period ended Sept. 30, 2006.

In addition, there is a further earn-out provision whereby Spacelabs would potentially pay Ferraris up to £5 million if the companies achieve certain revenue targets in fiscal 2007, according to a news release.

Spacelabs said it intends to finance the proposed acquisition through a senior credit facility.

Del Mar Reynolds is a designer, manufacturer and seller of non-invasive diagnostic cardiology monitoring solutions.

Based in Hawthorne, Calif., Spacelabs develops medical equipment and services.

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