Kalamazoo, Mich.-based medical technology
company Stryker Corp.
plans to pay $120 million to purchase
Patient Safety Technologies, which sells its Safety-Sponge System through wholly owned subsidiary SurgiCount Medical.
SurgiCount, based in Irvine, Calif., has been operating since 2006 and serves more than 300 hospitals. Its bar-coded surgical sponges and towels, barcode scanner and compliance tracking software are used in operating rooms to improve patient safety and quality and reduce healthcare costs by preventing retained foreign objects in surgery. According to a company release, approximately 2,300 incidents are reported each year in which sponges are left behind in surgery, costing an average of $400,000 per event.
SurgiCount's Safety-Sponge System will become a part of Stryker's product portfolio, which already includes reconstructive implants, medical and surgical equipment, and neurotechnology and spine products.
“This acquisition aligns with Stryker's focus on offering products and services that have demonstrated cost effectiveness and clinical outcomes,” Timothy Scannell, Stryker's group president of MedSurg and Neurotechnology, said in a release
Though the deal remains subject to stockholder approval and other customary closing conditions, it is expected to be finalized during the first quarter of 2014. Patient Safety Technologies reported revenue of $14.9 million for the first nine months of 2013, up from $12.5 million for the comparable period in 2012.Follow Rachel Landen on Twitter: @MHrlanden