INDIA BUSINESS WORLD - FEBRUARY 16^th - FEBRUARY 29^th - 2008

OPTO CIRCUITS INDIA BUYS US FIRM FOR $68 MILLION

Bangalore-based Opto Circuits India, a Rs 600-crore manufacturer of healthcare equipments, has signed a definitive agreement to acquire Wisconsin based Criticare Systems Inc, a maker of medical equipments, for $68 million (a little over Rs 260 crore). Opto will rely majorly on debt to fund this deal in addition to internal accruals. The $31.4-million Criticare Systems Inc, together with its subsidiaries, is engaged in the design, manufacture and marketing of vital signs and gas monitoring instruments, and related non-invasive sensors used to monitor patients in various healthcare environment. Under the agreement, a group of institutional investors holding around 25% of the target company has committed to this deal and the rest 40% is expected to be mopped up through an open offer.