Galil Medical to acquire Perseon for estimated $10.6 million

The Board of Directors of both Galil Medical and Perseon corp. approved an agreement for Galil Medical to aquire Perseon corp. for $1.00 per share in cash, plus $0.02 per warrant for each of the publicly traded warrants. The total transaction value is reported to be $10.6 million.

According to the Minneapolis/St. Paul Business Journal, the deal is contingent on Galil Medical raising $26 million in new debt and equity. They also reported that "Galil [Medical]'s board of directors and its private equity partners, which include Thomas, McNerney & Partners of Minneapolis, will be investing about $5 million toward that total".

The acquisition is expected to increase sales of both Galil Medical's cryotherapy ablation solutions and Perseons's MicroThermX microwave system which is used by the same interventional radioligists, thus allowing Galil Medical to provide both "hot" and "cold" ablation solutions. 

The acquisition is also expected to reduce combined operating expenses by at least $5 million.

For more details: http://globenewswire.com/news-release/2015/10/27/780290/10154095/en/Galil-Medical-Enters-Into-Agreement-to-Acquire-Perseon-Corporation-to-Create-Leader-in-Ablation-Treatment-for-Tumors.html, http://www.bizjournals.com/twincities/news/2015/10/27/galil-medical-merger-perseon-corp.html and http://www.massdevice.com/galil-medical-to-pay-nearly-11m-for-perseon/