Monday, March 12, 2012

Zynex, Inc. (ZYXI) Acquires Medical Device Manufacturer NeuroDyne Medical

Zynex, a provider and developer of non-invasive medical devices for electrotherapy and stroke rehabilitation, neurological diagnosis, and cardiac monitoring, today announced its acquisition of substantially all the assets of NeuroDyne Medical Corp., through its subsidiary Zynex NeuroDiagnostics Inc., effective March 9, 2012.

NeuroDyne is a Massachusetts-based manufacturer of advanced medical devices, which can be used for evaluation and treatment of neurological and neuromuscular disorders, as well as for education and research purposes. The company’s product line includes medical instruments, sensors, disposable electrodes, and software that offer sEMG, EKG, EEG, respiration, skin temp, EDR, EDL, peripheral blood flow, IBI, heart rate, and heart rate variability.

NeuroDyne’s products are sold and used by healthcare providers, educators, and researchers, and as such, the company’s customers include some of the top health services providers in the country.

Thomas Sandgaard, CEO of Zynex, acknowledged the benefits of the acquisition in regards to product expansion and sales networking.

“This acquisition is important for us as it adds established product lines and sales channels that we expect will fuel growth in our NeuroDiagnostics division. Our long-term goal is to generate sales and profits in our NeuroDiagnostics division that will match our electrotherapy division, Zynex Medical. Products in Zynex NeuroDiagnostics are sold domestically to clinics and hospitals as capital goods, and internationally through distributors,” Sandgaard stated in the press release.

Per the agreement, Zynex acquired NeuroDyne’s for $320,000 payable at closing ($145,000 in cash and $175,000 in restricted common stock), in addition to $100,000 in cash payable 60 days from the closing date. The deal also includes a seven year earn-out incentive, based on a percentage of net revenue generated by NeuroDyne products.

For additional information please visit: www.zynexmed.com

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