San Diego-based CareFusion ($CFN) is streamlining. The device company is unloading its neurodiagnostic business, selling it to Natus Medical ($BABY) for $58 million.
CareFusion makes infusion pumps, automated dispensing and patient identification systems, ventilation and respiratory machines and surgical instruments. The company said the sale of its Nicolet neurological monitoring and diagnostic business is intended to help it focus on its core strengths.
"The decision to divest the Nicolet business is in line with our strategy to simplify and focus our operations and prioritize our investments to profitably grow over the long term," Kieran Gallahue, CareFusion chairman and CEO, said in a statement.
Along the lines of boosting value, CareFusion announced in February a $500 million share repurchase program. The company generated $915 million in revenue during its fiscal 2012 second quarter, up from $886 million during the same period last year.
While CareFusion is streamlining to boost value, Natus is looking to grow. The deal, to be financed by existing cash and a revolving credit facility, gives Natus a division focused on neurodiagnostic and monitoring products that employs more than 400 employees globally and booked $95 million in sales in 2011, according to a joint announcement regarding the transaction. California-based Natus focuses on monitoring and diagnostic equipment for newborn care, hearing and neurological problems, epilepsy and sleep disorders (among other areas).
Natus CEO Jim Hawkins said the acquisition will boost his company's international status, because more than half of CareFusion's Nicolet business is based outside the U.S. The companies expect to close the deal in July.
- here's the release