United American Healthcare Corporation will acquire Pulse Systems, Inc for $3.4 million in cash and a $1.75 million promissory note with a due date of January 2011. UAHC will issue common stock to stockholders of Pulse Systems by the end of this year and will invest money repay Pulse Systems’ bank debt.
Pulse Systems is a leader in manufacturing services for medical devices for the cardiovascular market. The company specializes in precision laser-cutting capabilities, sub-assemblies and implants.
"After an extensive review of our strategic alternatives, we have embarked on an acquisition that meets each of our key investment criteria, including significant revenue contribution, positive EBITDA and long-term growth potential," said William C. Brooks, President and CEO of United American Healthcare in a statement. "While our pursuit of a strategic alternative was not limited to any specific industry, our purchase of Pulse Systems marks a new chapter in UAHC's longstanding commitment to the healthcare industry – one that we expect will provide new opportunities in the dynamic medical device sector."
"We are pleased to join forces with the UAHC team," said Herbert J. Bellucci, CEO of Pulse Systems in a statement. "Our focus on quality, service and leading-edge technology combined with the institutional knowledge of the UAHC management team will allow us to achieve our long-term growth objectives, both organically and through potential future acquisitions."
"After managing through the extraordinarily difficult business climate in 2008 and 2009, we are very pleased that our strategic review process has resulted in this promising initial transaction," said Brooks. "We welcome our new team members and will rely on the knowledge and experience of our combined management team as we seek to build our Company into a leader in the precision laser-based contract manufacturing industry."
UAHC will absorb important members of the senior management of Pulse Systems into the company.
Source: United American Healthcare Corporation
