Medcare Acquires SleepTech

A leading international manufacturer of diagnostic equipment for sleep treatment centers, Medcare (Reykjavik, Iceland), has acquired SleepTech, LLC (Kinnelon, NJ, USA), for cash and stock valued at around U.S.$25 million.

SleepTech provides turn-key management services to hospital-owned sleep centers. The company provides the technical components of a sleep study, whose results are used by sleep doctors to determine proper patient treatment. As a result of the acquisition, Medcare expects its revenues to increase to $35 million annually.

Medcare also announced plans to form a North American operating company, with the new acquisition as its base, to be called SleepTech Solutions and be based in Kinnelon. The company says it will be the first to focus on delivery of comprehensive solutions for sleep professionals and entrepreneurs interested in entering the sleep business. The new enterprise will be headed by SleepTech's Vyto Kab. Because Medcare believes 70% of the company's revenues will be generated in the United States, Medcare's chief executive officer, Svanbjorn Thoroddsen, will relocate there from Iceland.

"This acquisition transforms us from a maker of diagnostic equipment to a provider of comprehensive sleep solutions,” said Mr. Thoroddsen. "SleepTech's sleep centers are a proving ground for developing a platform of sleep services that we will share with all players in the sleep business. Our aim is to partner, not to compete.”




Related Links:
Medcare
SleepTech