Haemonetics Corporation to Acquire OpSens, Inc., Signals Further Move into Interventional Cardiology

Haemonetics Corporation, a provider of products for plasma centers, blood banks, and hospitals, has announced its intention to acquire OpSens, Inc., a medical device company specializing in inteventional cardiology solutions powered by its proprietary optical technology. This strategic move is will significantly enhance Haemonetics’ Hospital portfolio adding to its vascular closure portfolio which the company acquired from Cardiva Medical in March 2021.

Under the definitive agreement, Haemonetics will acquire all outstanding shares of OpSens for CAD $2.90 per share in an all-cash transaction, valuing OpSens at approximately USD $253 million at the current exchange rate. OpSens has TTM revenue of $43.1M so Haemonetics is paying approximately 5.9x TTM sales. OpSens has been growing rapidly and revenues were up 31% in the most recent quarter. Given Haemonetics position in the U.S. hospital market, there will likely be sales synergies between the two organizations.

OpSens sells products into the interventional cardiology market that utilize its optical technology. Core products like SavvyWire® and OptoWire® are used in procedures such as Transcatheter Aortic Valve Replacement (TAVR) and Percutaneous Coronary Intervention (PCI). SavvyWire® acts as a sensor-guided 3-in-1 guidewire for TAVR, optimizing procedure workflows and potentially shortening hospital stays for patients. Meanwhile, OptoWire® serves as a pressure guidewire, aiding clinicians in diagnosing and treating coronary artery disease by accurately measuring Fractional Flow Reserve (FFR) and diastolic pressure ratio (dPR).

Haemonetics sees this acquisition as a major step forward in expanding its Hospital business unit’s portfolio, particularly in the burgeoning interventional cardiology sector. OpSens’ technology addresses a significant market valued at approximately $1 billion. Moreover, Haemonetics believes the optical technology holds potential for diversification into other medical applications. The company plans to invest in internal and external research and development, clinical advancements, and strategic partnerships to further strengthen its leadership in interventional cardiology. Haemonetics also aims to leverage its extensive commercial and geographic reach to accelerate the adoption of OpSens’ products.

The acquisition of OpSens is expected to improve revenue growth given the growth rates significantly above Haemonetics historical product lines and be immediately accretive to adjusted earnings per diluted share immediately. OpSens has generated operating losses of $10.7 million in the first nine months of this fiscal year, so clearly Haemonetics is expecting to generate meaningful cost synergies as well. The deal is anticipated to close by the end of January 2024. Haemonetics plans to finance the acquisition through a combination of cash and a revolving credit facility, with the net debt to EBITDA ratio expected to be approximately 2.1x post-acquisition.

This acquisition will allow Haemonetics to leverage its hospital sales force and given the geographic disparities between the two companies, will most likely lead to sales synergies. It also will benefit growth rates for the company on both an inorganic and organic basis. What is less clear is Haemonetics ability to become a more significant player in interventional cardiology, which is outside its core competency, and dominated by major diversified players such as Abbott, Medtronic, and Boston Scientific.