Awaits clarity from target firm in EuropeMUMBAI: The latest acquisition plan of Opto Circuits, Bangalore-based manufacturer of medical diagnostics and interventional products, has been deferred till November.
That’s because Opto is awaiting feedback from the target company, which is into critical care equipment manufacturing, on terms and conditions.
Opto plans to spend close to $100 million for the acquisition. This also means Opto has shelved fund-raising plans for now.
The company’s board at a meeting last Thursday, decided to defer raising funds.
“Since our fund-raising was linked to the European acquisition, it has been deferred till we firm up our plans on that firm,” Bodapati Bhaskar, chief financial officer, Opto, said. The company had plans to raise up to Rs 1,000 crore, which it could utilise for acquisitions or to pay off debts. It had deliberated to take shareholders’ nod to raise funds during its annual general meeting scheduled for September 30.
Although the amount to be raised has not been fixed this would only be an enabling resolution to save time when the company actually decide on raising it.
Opto had earlier said that the acquisition target is a privately held European company specialising in patient-monitoring equipment.
The Indian major is currently awaiting a decision from the European company’s promoters, before tehy can go ahead with their plans.
“We continue to focus on the patient monitoring segment, which is a $1 trillion market, besides cardiac related devices,” Bhaskar said.
To build its range of critical care and cardiac care equipments, Opto has been on an acquisition spree in the past 2-3 years, besides its strategy on technology transfers.
The company had bought US-based Criticare Systems Inc for about $70 million earlier this year, which gave it a presence in non-invasive equipment like vital sign monitors, anaesthesia monitors and pulse oximeters.
Opto had acquired German stent manufacturer Eurocor in 2006 for a consideration of Rs 60.9 crore.
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