Bangalore-based manufacturer of medical diagnostics and interventional products, Opto Circuits, has cancelled its plan to acquire the European company citing the demanded price to be unjustifiable. The price demanded was $120 million which is 20% higher than the company envisaged.
Opto had signed a letter of intent (LoI), last month, for the proposed purchase of 100% of the Europe-based privately held medical devices company, specialising in patient monitoring equipments. The acquisition was estimated to be about $100 million.
This is notwithstanding the valuable and synergistically complementary that its business brings to Opto Circuits. Although Opto has pulled out of the deal from its side, it may reconsider if the European firm comes back with a price lower than $100 million.
The proposed acquisition would add to Opto’s range of critical care and cardiac care equipments. The company has been on an acquisition spree in the past 2-3 years to keep expanding in this hi-end segment.