Olympus Corporation (TSE: 7733) today announced that it has entered into an agreement to acquire Veran Medical Technologies, Inc. (VMT) (CEO: Jason Pesterfield), a leading provider of advanced medical devices specializing in interventional pulmonology, for up to USD 340 million. The acquisition will be implemented through Olympus subsidiary Olympus Corporation of the Americas (OCA), and will be the latest in a series of strategic acquisitions designed to strengthen Olympus' position as a leading global medical device company.As part of Olympus' Corporate Strategy, unveiled in November 2019, the company vowed to "focus and scale" its therapeutic solutions division. To accelerate the process and provide greater agility, Olympus made OCA the company's therapeutic division headquarters, recognizing the significant growth opportunities in North America. The company also identified three core medical fields to prioritize - gastroenterological endotherapy devices, urological devices, and respiratory devices. The VMT acquisition is centered on respiratory devices and will position Olympus as a leader in this field.
According to Nacho Abia, global chief operating officer and CEO of OCA, the VMT acquisition will strategically position Olympus and boost development in other areas, "We are very excited about acquiring VMT because its portfolio of devices will complement our product portfolio and further strengthen our position in respiratory medical devices," he said. "The most significant part of this deal is that we will secure immediate access to VMT's unique Electromagnetic Navigation system with proprietary devices to build a stronger future respiratory product portfolio."
Already a leader in bronchoscopy systems, Olympus' endoscope technologies will combine perfectly with VMT's navigation products to develop solutions for improved diagnosis of peripheral lung cancer.
Lung cancer affects the highest number of cancer patients and is the leading cause of cancer-related deaths globally.* With increased awareness and more lung cancer screenings done by low-dose CT (computed tomography), the need for definitive diagnosis of lesions in the peripheral regions of the lungs by tissue biopsy is expected to increase. Combined with Olympus' technology, VMT's navigational platform and proprietary devices support this need.
"We are proud to be joining forces with Olympus, a company with a 100-year legacy and a global reputation for quality, leadership and innovation," said Jason Pesterfield, CEO of VMT. "Olympus has a clear strategy to become a global medtech leader, and we're excited to contribute our unique capabilities and become part of this journey."
This acquisition will provide immediate incremental revenue and an experienced sales team within the US market. VMT's advanced and proven navigation technology, together with Olympus' respiratory leadership, strengthens and enhances Olympus' global position. For details, please refer to our corporate disclosure, "Notice regarding acquisition of Veran Medical Technologies, Inc. in the United States." (Available at: https://www.olympus-global.com/news/ir/2020/)
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