Avanos Medical to acquire pain management innovator Diros Technology
In a decisive move to enhance its chronic pain management solutions, US-based medical technology firm Avanos Medical has announced plans to acquire Diros Technology, a manufacturer of innovative radiofrequency (RF) products used in chronic pain treatment.
The financial terms of the deal were not revealed.
The Toronto-based Diros Technology is a pioneering company in radiofrequency ablation (RFA) technology, a domain where more than one million procedures are carried out globally each year to alleviate chronic musculoskeletal pain.
Diros Technology’s products are designed to deliver RF energy via precisely positioned, minimally invasive probes that heat nervous tissue near the probe’s tip. This process effectively incapacitates the nerve’s ability to transmit pain signals.
Avanos Medical is set to incorporate Diros Technology’s unique RF Trident technology into its product line, further enhancing its pain management treatment options and complementing its premium COOLIEF Cooled Radiofrequency product offerings.
Joe Woody — Avanos Medical CEO said: “The acquisition of Diros Technology strengthens Avanos’ leadership position in RF technology by providing a full range of high-quality, differentiated pain management products.
“We expect our enhanced portfolio will offer significant opportunities to deliver non-opioid-based, minimally invasive treatments to patients throughout the world. With this comprehensive suite of RF offerings, we believe Avanos is poised for future growth across all major sites of patient care: hospitals, ambulatory surgery centers and physician’s offices.”
The deal is slated for completion in the third quarter of 2023, pending customary closing conditions. The acquisition will be funded through a blend of Avanos Medical’s existing credit facility and available cash.
Upon completion of the acquisition, Avanos Medical anticipates immediate accretion to revenue growth, gross margins, operating margins, and earnings per share (EPS).