Avanos Medical, Inc. today announced it has entered into a definitive agreement to acquire Diros Technology Inc., a leading manufacturer of innovative radiofrequency (RF) products used to treat chronic pain conditions.

Based in Toronto, Canada, Diros Technology has been at the forefront of radiofrequency ablation (RFA) technology since its founding. In the global market, over one million RFA procedures are performed annually in the treatment of chronic musculoskeletal pain. For chronic pain management, Diros Technology's products deliver RF energy through precisely placed, minimally invasive probes that heat nervous tissue near the probe's tip, deactivating the nerve's ability to transmit pain signals.

The addition of Diros' unique RF Trident™ technology is expected to further enhance Avanos' pain management treatment options and complement its premium COOLIEF* Cooled Radiofrequency product offering.

"The acquisition of Diros Technology strengthens Avanos' leadership position in RF technology by providing a full range of high-quality, differentiated pain management products," said Avanos Chief Executive Officer, Joe Woody. "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 transaction is expected to close in the third quarter of 2023, subject to customary closing conditions. Avanos will finance the acquisition through a combination of funds from its existing credit facility and available cash. The company estimates that the new business will be immediately accretive to revenue growth, gross margins, operating margins and EPS.

The Company plans to share additional details about the transaction during its Investor Day event on June 20, 2023.

 

Source:prnewswire.com

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