Edwards Lifesciences ($EW) has closed a $42 million deal to buy BMEYE, a Dutch company that makes noninvasive heart-monitoring equipment and has even had NASA as a client. The deal offers more optimistic news a day after Edwards' stock slid because its third-quarter sales numbers came up short.
BMEYE focuses on advanced hemodynamic monitoring--a sweet spot for Edwards, which sells heart valves and hemodynamic monitoring equipment. With the acquisition, Edwards gains advanced versions of vital monitoring technology that will help it modernize and diversify its product line, thanks to ready-made products and others in BMEYE's pipeline.
BMEYE uses a noninvasive finger cuff to measure cardiac function, blood pressure, fluid responsiveness and other data. Edwards' hemodynamic equipment is primarily used in hospitals for acute care, but BMEYE's products are used by clinicians outside of hospitals, the deal announcement notes. Edwards will bring the BMEYE machines into hospitals, and said the devices will complement the company's existing technology.
BMEYE launched in 2005 and has products approved for sale both in the U.S. and Europe. Its technology has also helped monitor the blood pressure of NASA astronauts, the company's website explains.
Edwards' stock plunged more than 18% Oct. 9 after the company reported that its third-quarter sales hit $448 million, well below a projected range of $465 million to $485 million. So far, the stocked has rebounded slightly, climbing more than 3% in late morning trading.
- read the release