Postmerger, the combined medical technologies of the two companies has the potential to enable expansion into new clinical markets and applications, both domestically and globally. In May 2010, SonoSite signed a deal with Physio-Control to expand their presence in the prehospital settings, and the acquisition of VisualSonics at this stage will further enable SonoSite to make inroads into preclinical settings. In addition, SonoSite will be able to leverage on VisualSonics relationships with world class pharmaceutical and biotechnology companies, universities, and medical institutions for preclinical research purposes.

Kevin M. Goodwin, SonoSite president and CEO commented on the acquisition: "Our intention is to integrate VisualSonics' micro-ultrasound technology with SonoSite's miniaturization competency and user design to deliver ultra high-frequency micro-ultrasound into clinical medicine.”

SonoSite is expected to benefit most from VisualSonics' presence in the preclinical market, which is estimated to exceed $350 million, with a projected double-digit annualized growth rate over the next few years. VisualSonics is expected to be converted into a wholly owned subsidiary of SonoSite over the next 30 days, aiding in the diversification of SonoSite's revenue base. The increase can be attributed to VisualSonics' strong product pipeline, high margin business and also a recurring revenue stream from service and accessories. The acquisition depends upon approval by VisualSonics shareholders as well as the satisfaction of other customary conditions.

Related Links:
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