The Selling Company: Ascension Technology Corporation manufactures 3D magnetic and optical tracking devices for medical guidance and minimally invasive surgery. It offers surgical navigation and image guided procedures based products for tracking and localizing medical instruments within a patient’s body. Ascension’s sensors are being sold to the leading ultrasound OEMs worldwide.
Why the company was sold: One of the partners was past retirement age and, furthermore, the company had developed patented technology for 3D tracking devices, but its sales had stagnated in the high single digits. The partners concluded that it may require a larger corporation to optimize the potential of its leading technology.
Capital Alliance’s Performance: Capital Alliance was the third investment banking company engaged by the owners to find a suitable acquirer. Prior investment bankers were not able to secure any offers of interest to the owners. Capital Alliance contacted potential acquirers in North America, Europe and Japan and initially progressed far along with a Japanese buyer that later changed direction. Capital Alliance contacted the client’s competitor, which had just been acquired by Roper. After several attempts it was established that Ascension’s business was an excellent fit and Roper presented a letter of intent.
Terms of the Transaction: Terms were all cash at a multiple exceeding 10 times the trailing twelve months earnings. The transaction was concluded in exactly 90 days from signing the letter of intent.
The Acquiring Company: Roper Industries, Inc. manufactures radio frequency products, industrial technology products, energy systems and controls, and medical and scientific imaging products and software. Its medical and scientific imaging segment offers 3D measurement technology, diagnostic and therapeutic disposable products and digital imaging products and software.