Natus Medical Inc., a provider of health products for newborns, said on Tuesday it will acquire SonaMed Corp. by paying for the company in cash.
Natus is a provider of healthcare products used for screening, detection, treatment, monitoring and tracking of common medical ailments of certain newborn conditions. SonaMed manufactures the Clarity Screener and disposable products used to screen for hearing loss in newborns.
Both companies' boards agreed to the merger which is expected to close in 40 days. No terms of the deal were disclosed.
SonaMed had revenues of about $3.5 million in 2007. Natus said it expects the purchase to add to its earnings during the first quarter following the deal.
Shares of Natus Medical rose 59 cents, or 3.1 percent to $19.61 in late afternoon trading.