May 1, 2006, San Jose, CA--Laserscope has acquired InnovaQuartz (IQ; Phoenix, AZ) for $7.5 million in cash. Founded in 1991, InnovaQuartz, a privately held company, is a developer, manufacturer, and supplier of fiber optics, sterile fiber optic delivery devices, optical components and optical subassemblies.
Laserscope acquired all of the capital stock of InnovaQuartz for approximately $7.5 million in cash, the assumption of approximately $1.1 million in debt and future cash payments contingent on the financial performance of IQ over approximately three years.
"The addition of IQ's newest fiber optic product line provides us an immediate entry with leading technology into another important urological market -- the intracorporeal treatment of kidney, bladder, and other urinary stones that use holmium laser technology," said Eric Reuter, president and CEO of Laserscope. "Entry into this large growth market is consistent with our strategy to become a complete player in the field of urology, and the treatment of stones is one of the highest volume urological surgical procedures in the U.S. outside of the treatment of benign prostatic hyperplasia (BPH)."
Since 2002, IQ has been a supplier of a key component of Laserscope's GreenLight PV fiber optic delivery device used for the treatment of BPH. In addition, IQ recently acquired proprietary intellectual property and manufacturing expertise that it uses to produce a line of technologically advanced sterile fiber optic delivery devices available for use in intracorporeal laser lithotripsy, or the endoscopic treatment of kidney, bladder, and other urinary stones using holmium laser technology.
"We therefore the acquisition will enable us to realize an immediate reduction in the cost of goods of our single use products," Reuter said. "We anticipate that IQ's manufacturing and design capabilities will contribute further reductions in the costs of our fiber optic disposable products in the future."
The InnovaQuartz acquisition is expected to be accretive beginning in 2007. IQ will be managed and operated as a wholly owned subsidiary of Laserscope for the foreseeable future.