Masimoâ€™s new acquisition could aid in the fight to help manage coronavirus (COVID-19) patients. The Irvine, CA-based company said late last week that it had entered into a definitive agreement to acquire ventilation company specialist, TNI medical AG for an undisclosed sum.
The deal is set to close in 2Q20 and Masimo expects to fund the acquisition with existing cash on hand and expects the transaction to have an immaterial impact to net earnings in 2020.
WÃ¼rzburg, Germany-based TNI has designed the softFlow technology to provide high flow, warmed, and humidified respiratory gases to spontaneously breathing patients suffering from serious pulmonary conditions.
Masimo is no stranger to TNI. In August of 2019, the company disclosed an investment in TNI that included an exclusive option to buy.
â€œWe have been closely monitoring TNI since Masimo made its investment last summer and are thrilled to see the tremendous progress they have made in such a short time,â€ Joe Kiani, Founder, Chairman, and CEO of Masimo said in a release. â€œDue to COVID-19, there has been an increasing demand for TNIâ€™s softFlow technology. We decided to exercise our option to acquire the company well before the option expired to allow Masimo to scale manufacturing. We believe this technology will provide clinicians with important additional tools to address the growing number of people affected by pulmonary diseases and respiratory-related illnesses, including those suffering from COVID-19. This acquisition illustrates our commitment to improving patient outcomes and reducing the cost of care.â€