Össur has this week signed an agreement to acquire Touch Bionics Limited, a leading global provider of innovative upper limb prostheses and supporting services that was founded by Dumfries born inventor ‘David Gow’. Born 1957 in Dumfries David was educated at Breconbeds School, Kirtlebridge, Annan Academy and the University of Edinburgh. He studied Mechanical Engineering from 1975 to 1979, graduating with honours in Engineering Science. He then worked for a year at Ferranti (Scotland) a defence contractor in Edinburgh. In January 1981 he began a research post at the University of Edinburgh lasting until 1984 when he transferred to the National Health Service (NHS). Since 1993 to date he has managed the Rehabilitation Technology Services for NHS Lothian and is based at the SMART Centre in Edinburgh. Touch Bionics has over 120 employees with operations in Scotland, Germany, and the United States. In 2015, total sales amounted to GBP 15 million (USD 21 million) with an adjusted EBITDA of GBP 0.9 million (USD 1.3 million).
The purchase price is GBP 27.5 million (USD 39 million), on a debt and cash free basis. The acquisition is completed as of today and financed through existing loan facilities. The acquisition does not affect the existing share buyback program.
With this acquisition Össur enters into the upper limb prosthetic market enabling the Company to offer a complete bionic product portfolio to customers in the prosthetic industry. Together, both companies are well positioned to further strengthen their worldwide market position in both lower and upper limb prosthetics. The acquisition of Touch Bionics is a further display of Össur’s commitment to upgrading prosthetic technology resulting in effective clinical outcomes and improved quality of life.
Synergies between the operations of Össur and Touch Bionics are expected to be achieved over the next 2-3 years, ultimately increasing the EBITDA margin of Touch Bionics to a similar level as for Össur. The acquisition will not have an impact on the financial guidance provided for the full year.
Jon Sigurdsson, President & CEO of Össur:
“Touch Bionics has developed cutting edge upper limb technology and created a strong brand presence over recent years. This acquisition is an important milestone for Össur as it marks our entry into the upper limb prosthetic market. Össur and Touch Bionics are committed to pushing the boundaries of bionic technology to enable amputees to live a life without limitations.“
Ian Stevens, CEO of Touch Bionics:
“There are exciting times ahead and we look forward to being a part of the Össur organization. Össur has a strong presence in the market and is known for being a technology leader in prosthetics. Touch Bionics and Össur share the same vision of helping amputees live a life without limitations with the best innovation and technology available.”
About Össur
Össur (NASDAQ: OSSR) is a global leader in non-invasive orthopaedics that help people live a life without limitations. Its business is focused on improving people’s mobility through the delivery of innovative technologies within the fields of braces, supports and prosthetic limbs. A recognized “Technology Pioneer”, Össur invests significantly in research and product development; its award-winning designs ensuring a consistently strong position in the market. Successful patient and clinical outcomes are further empowered via Össur’s educational programs and business solutions. Headquartered in Iceland, Össur has major operations in the Americas, Europe and Asia, with additional distributors worldwide. www.ossur.com
About Touch Bionics
Touch Bionics is a provider of world-leading prosthetic technologies designed to achieve positive outcomes for people with upper limb deficiencies. Touch Bionics was the first company to develop an electrically powered prosthetic hand with five independently powered fingers and the company continues to be a pioneer in upper limb prosthetics. The company’s products include electronic prosthetic hand and prosthetic fingers, as well as passive silicone prostheses that closely match the natural appearance of the wearer. A spin-out from the UK’s National Health Service, Touch Bionics was founded by inventor David Gow and was funded and supported by Archangel Investors Limited and Scottish Enterprise. To learn more, visit www.touchbionics.com.
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