OSI Systems completes its acquisition of Spacelabs Medical

OSI Systems Inc. on March 19 closed on its acquisition of Spacelabs Medical.

OSI had proposed in January to buy Spacelabs for $57 million, subject to post-close adjustments for working capital and other items. OSI Systems paid approximately $47 million as of the closing, with the final purchase price still subject to post-closing adjustments.

The addition of Spacelabs brings an additional 800 employees to OSI, as well as annual revenues in the range of $150 million. Spacelabs management has retention bonuses in an aggregate amount of approximately $5.4 million, which OSI will expense over the next 18 months.

Spacelabs Medical is based in Issaquah, Wash., and comes to OSI through General Electric Co.'s (GE) acquisition Instrumentarium Corp. U.S. and European regulators required GE to divest Spacelabs as part of its agreement to complete the $2.2 billion Instrumentarium transaction in October 2003.

OSI has three product lines - medical, security and optoelectronic products. The medical business includes Osteometer MediTech, which develops, manufactures and markets bone densitometry technology for bone metabolic diseases, such as osteoporosis; and Dolphin Medical Inc., which specializes in patient monitors and accessories in pulse oximetry and respiratory gas analysis.

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