Össur has today signed an agreement to acquire Touch Bionics Limited, a leading global provider of innovative upper limb prostheses and supporting services. Touch Bionics has over 120 employees with operations in Scotland, Germany, and the United States. In 2015, total sales amounted to GBP 15 million (USD 21 million) with an adjusted EBITDA of GBP 0.9 million (USD 1.3 million).
The purchase price is GBP 27.5 million (USD 39 million), on a debt and cash free basis. The acquisition is completed as of today and financed through existing loan facilities. The acquisition does not affect the existing share buyback program.
With this acquisition Össur enters into the upper limb prosthetic market enabling the Company to offer a complete bionic product portfolio to customers in the prosthetic industry. Together, both companies are well positioned to further strengthen their worldwide market position in both lower and upper limb prosthetics. The acquisition of Touch Bionics is a further display of Össur's commitment to upgrading prosthetic technology resulting in effective clinical outcomes and improved quality of life.
Synergies between the operations of Össur and Touch Bionics are expected to be achieved over the next 2-3 years, ultimately increasing the EBITDA margin of Touch Bionics to a similar level as for Össur. The acquisition will not have an impact on the financial guidance provided for the full year.
Jon Sigurdsson, President & CEO of Össur:
"Touch Bionics has developed cutting edge upper limb technology and created a strong brand presence over recent years. This acquisition is an important milestone for Össur as it marks our entry into the upper limb prosthetic market. Össur and Touch Bionics are committed to pushing the boundaries of bionic technology to enable amputees to live a life without limitations."
Ian Stevens, CEO of Touch Bionics:
"There are exciting times ahead and we look forward to being a part of the Össur organization. Össur has a strong presence in the market and is known for being a technology leader in prosthetics. Touch Bionics and Össur share the same vision of helping amputees live a life without limitations with the best innovation and technology available."