Olympus Corp. of the Americas will acquire Image Stream Medical, which develops video equipment and system integration used in operating rooms, in a deal valued at $87 million.
Center Valley, Pa.-based Olympus, the largest endoscope distributor in the country, said the deal will allow it to create an integrated system that will improve outcomes and lower costs. In particular, it will facilitate more advanced procedures, such as minimally invasive surgeries, the company said.
The transaction is the latest in a wave of deals across the medical device industry where companies increasingly look to bolster product suites and consolidate the number of hospital suppliers. Over the past several years, manufacturers have joined forces to try to offset pricing pressure from hospitals.
Olympus highlighted Image Stream's knowledge of intellectual property-based image management solutions, workflow strategies across multiple clinical strategies and IT infrastructure that provides enterprise-wide access to critical data and media, which will allow Olympus to work more effectively and efficiently, the company said.
"The synergy between Olympus and Image Stream Medical is unprecedented," said Todd Usen, president of the Medical Systems Group at OCA. "Combining Olympus' global reach and expertise, world-class support infrastructure and market leadership with Image Stream Medical's innovative products, will result in superior work flow and patient-care and safety enhancements for healthcare enterprises."
Image Stream, which had sales of about $31 million in 2016, will continue to operate as a wholly owned subsidiary under its existing name, according to a news release.
The deal, which is still subject to regulatory and government approvals, is expected to close in June, according to an Olympus filing with the Financial Accounting Standards Board in Japan.
Olympus and Image Stream Medical customers will experience no immediate changes in resources, services or contacts, the companies said. Olympus Corporation of the Americas is a wholly owned subsidiary of Olympus Corp. in Tokyo.
"Image Stream Medical is a top tier integration provider that continues to experience consistent market growth on the strength of its products and operational excellence," OCA President and CEO Nacho Abia said.
Last month, Becton Dickinson & Co. agreed to pay $24 billion in a cash and stock deal to acquire C.R. Bard Inc., which makes medical equipment to assist oncology and surgery. Cardinal Health also announced plans to acquire Medtronic's medical supplies business for $6.1 billion.
Earlier this year, Abbott Laboratories acquired rival St. Jude Medical for $25 billion. In 2015, Medtronic bought Covidien for nearly $50 billion, and Zimmer Holdings merged with Biomet for $13.4 billion. Becton Dickinson acquired CareFusion in a $12 billion deal two years ago.
