US medical equipment firm Baxter International Inc has entered into an agreement to buy Cheetah Medical, a Boston- and Tel Aviv-based provider of noninvasive devices for monitoring patients’ fluids, for as much as $230 million.
The deal will be made with $190 million paid upfront in cash, Baxter said in a statement, with the potential of an additional $40 million based on clinical and commercial milestones.
Founded in 2000 by Hanan Keren, the firm has raised $91.1 million to date, according to Crunchbase.
The firm’s monitoring devices allow clinicians to use sensor pads and an algorithm to get measurements of fluid responsiveness in patients, enabling more informed treatment decisions regarding the proper amount of fluid required to maintain the flow of blood to organs and tissues. The proprietary algorithm calculate hemodynamic parameters to assess heart function.
Cheetah has been selling its technology in some 400 hospitals in 30 countries around the world, including the US.
Cheetah Medical’s technology helps to shift treatment away from a “one-size-fits-all” approach to fluid administration to one that is data-driven and tailored to individual patient needs, Baxter said in a Tuesday statement.
Cheetah Medical’s products are naturally complementary to those of Baxter, the US firm said. Baxter’s products include infusion systems and intravenous solutions, the statement said.
“The addition of Cheetah Medical will accelerate Baxter’s presence in the specialized patient monitoring space with key technology used to guide fluid management — a critical aspect of patient care — as too little or too much fluid can increase mortality and risk of complications,” the statement said.
“The robust capabilities and innovative monitoring technologies we will gain with the acquisition of Cheetah Medical will be additional strategic growth drivers as we work to eliminate preventable harm and enable personalized therapy for hospitalized patients around the world,” said David Ferguson, general manager, Medication Delivery, Baxter, in the statement.
“Becoming part of Baxter will enable us to continue to invest in clinical and commercial initiatives on a global basis, which will help ensure that the right therapy gets to the right patients at the right time,” Chris Hutchison, president and chief executive officer, at Cheetah Medical, in the statement.
The acquisition is expected to close in the fourth quarter of 2019, subject to conditions.