Galil Medical signs agreement to acquire 100% of Perseon

Galil Medical, the global leader in interventional oncology cryoablation technology, announced today it has entered into an agreement to acquire 100% of Perseon Corporation, a publicly-traded company and a leader in the field of microwave ablation, in an all cash transaction valued at $10.6M. The resulting combined company will be privately owned.

The transaction is contingent upon, among other things, Galil raising approximately $26 million concurrent with the deal's closing and upon the tender of a majority of Perseon's outstanding common stock and 65% of Perseon's publicly-traded warrants.

"The combination of Galil and Perseon will allow the new company to further leverage the significant investments both Galil and Perseon have made in the field of interventional oncology. The vast majority of interventional oncologists utilize both cryoablation and microwave ablation technologies to treat their broad patient base, and we look forward to bringing even more value to the physician and patient base that both Galil and Perseon are currently serving." said Martin J. Emerson, Galil Medical President and CEO, who will serve in the same capacity for the new company. "We believe there are significant operating synergies that we can derive by combining these two companies, which will allow for significant investments in both clinical research and new product development. Galil has built a strong and well-regarded reputation for its commitment to innovation and its investments in both meaningful clinical research and truly differentiated new products, and the new company will hold itself to that same high standard."

The resulting combination is expected to generate strong double-digit percentage revenue growth and expanding gross margins, while achieving positive EBITDA in 2017 and positive cash flow by year-end 2018.

The transaction is expected to close in December 2015 or early 2016, subject to Galil obtaining sufficient funding to close the transaction. Galil's board of directors and its current private equity shareholder base are fully committed to this transaction, and will be investing approximately $5M of the expected $26M in new capital that is required to fund this acquisition, pay the related transaction expenses and provide growth capital for the combined company.

SOURCE Galil Medical