(Alliance News) - Inspiration Healthcare Group PLC on Thursday said it has launched its US platform through the strategic acquisition of Airon Corp.
Shares in the Crawley, England-based medical technology company were up 7.5% to 43.00 pence each in London on Thursday around midday.
Airon is a specialist respiratory device company based in Florida, US.
"The acquisition is in line with Inspiration Healthcare's long-term strategy to acquire companies with both complementary technologies and sales reach to expand the group's global footprint, add scale and accelerate growth. The US is a significant strategic market for the group and the acquisition provides an established platform to support and de-risk the company's commercial strategy," Airon explained.
In August 2023, Inspiration Healthcare submitted a 510K application to the FDA for the SLE6000 neonatal ventilator which, pending approval, it aims to launch in the second half of financial 2025. The acquisition of Airon provides an established platform for US market entry for the SLE6000, the company noted.
Inspiration Healthcare said it will pay up to USD2.5 million. The consideration includes an initial upfront cash payment of USD1.5 million plus an earn out of up to USD1.0 million dependent on the delivery of future revenue.
In the year to April 30, Airon generated total revenue of USD1.4 million and a pretax loss of USD400,000.
Inspiration Healthcare expects the acquisition to be earnings accretive in the second full year of ownership.
Chief Executive Neil Campbell said: "The acquisition of Airon is an important strategic milestone for Inspiration Healthcare. The potential approval of the SLE6000 represents a significant commercial opportunity and Airon gives the Group an established direct presence and expertise in the USA, which will accelerate and de-risk our commercial strategy. Airon also brings a range of complementary products, which will further enhance our portfolio and enable us to increase sales in other markets."
By Sophie Rose, Alliance News senior reporter
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