Zomedica Corp. [AMEX: ZOM] disclosed that it has entered into an acquisition agreement to purchase Pulse Veterinary Technologies (PulseVet) businesses for $70.9 million in an all-cash, stock deal. PulseVet has gained recognition as a prominent world leader in electro-hydraulic shock wave technology for the cure of a broad range of conditions in veterinary sufferers.
This acquisition is beneficial for Zomedica as PulseVet is the top market leader in the equine space. It has 1,500 systems actively in use all around the world. Not too long ago, it recently introduced a new handpiece, the X-Trode, which has an energy output designed for maximum usefulness while there is no more need for patient tranquilizers.
ZOM disclosed that this purchase will allow the firm to improve both of its organizations by what it has learned from each other and add to the joint effort. Among other things, the firm contemplates that its current sales organization will add PulseVet’s small animal products to its product portfolio to help expedite the growth of the X-Trode.
Furthermore, PulseVet’s technology is useful in conditions including tendon and ligament therapy, bone cure, osteoarthritis, chronic pain, and wound healing. The PulseVet business uses a razor-razorblade economic model where a customer purchases a shock wave generator as capital equipment, along with replaceable therapy handpieces called “Trodes”. Each Trode has an estimated duration of forty to fifty therapy sessions. Once a Trode accomplishes its useful life, the customer swaps it with a refurbished Trode.