ARCHIMED acquires Nasdaq-listed Natus Medical Incorporated in $1.1 billion take-private deal
Natus, a global leader in neurodiagnostic devices, is the first purchase of ARCHIMED’s MED Platform II, which began fundraising in January.
ARCHIMED has completed its acquisition of Natus Medical Incorporated (NTUS; NASDAQ) in a $1.1 billion take-private deal. Natus shareholders will receive $33.50 in cash, without interest, for each share of Natus common stock, or a 29 percent premium over the Company’s common stock closing price on April 17, 2022, the day before the public announcement of the parties’ entry into definitive agreement. The ARCHIMED fund acquiring Natus is MED Platform II, which began fundraising in January.
Founded in 1987 and headquartered in Middleton, Wisconsin, Natus is a leading global designer, manufacturer and distributor of medical devices for the screening, diagnosis and treatment of disorders affecting the brain, central nervous / peripheral nervous systems, and sensory systems. Natus, with subsidiaries in Canada, Denmark, the UK, Germany, France, Spain, Australia and New Zealand, sells 25 product lines throughout the world, which are used for conditions such as epilepsy, sleep disorders, sensory disorders, neuromuscular diseases and neuro monitoring during medical procedures. Natus employs nearly 1,400 people globally and has engaged in more than 20 revenue-expanding acquisitions since 2004.
“ARCHIMED’s mix of operational, medical, scientific and financial expertise will help us continue our mission to serve our customers as we further integrate, internationalize and grow our business,” says Thomas J. Sullivan, Chief Executive Officer of Natus. “Together with management, we’ll significantly expand the reach and breadth of Natus’ market leading products, reinforce and focus research and development, and pursue acquisitions of complementary businesses,” says ARCHIMED Partner Justin Bateman. “Natus is an exciting growth platform with tremendous potential to positively impact patient lives around the world.”
Natus is the first purchase of ARCHIMED’s mid-market buy-and-build fund, MED Platform II (MP II), a successor to the fully invested MED Platform I (MP I). MP I closed on €1 billion in 2020 – at the time, a record for a European-based private equity healthcare fund. It’s currently valued at two times its cost of investment, making it a top decile performer for buyout funds launched in 2019, according to Preqin data. The MED Platform funds partner with growth companies in the European and North American mid-cap healthcare sectors, buying majority stakes for €50 million to €1 billion in association with existing owners and managers. The MED Platform funds provide companies with the strategic, tactical and financial resources they need to broaden product lines and expand into new regions, organically and through acquisitions.
“We’re aiming to do one or two more platform transactions for MP II before the end of this year, deploying about 25 percent of the fund in six months.”
Denis Ribon, ARCHMED Chairman - Managing Partner
MED Platform II has raised a substantial, but undisclosed amount since launching fundraising in January and remains open to investment. The fund has an investor re-up rate of almost 100 percent with the typical commitment larger than the average commitment to MP I. MP II will target 10 to 12 platform investments versus the seven MP I targeted. MP II has attracted a wide-range of institutional and family office investors, with 50 percent, 40 percent and 10 percent coming respectively from Europe, North America and the Asia-Pacific region. ARCHIMED intends to raise considerable cash for bolt-on acquisitions for Natus, partly through co-investment in the company from MED Platform II fund investors.
In connection with the transaction, Stifel has served as a financial advisor to Natus, and Davis Polk & Wardwell LLP has served as legal advisor to Natus. Jefferies has served as financial advisor to ARCHIMED, and Latham & Watkins LLP has served as legal advisor to ARCHIMED.