US UAHC takes over sector firm Pulse Systems

United American Healthcare Corp (NASDAQ:UAHC), a contract manufacturer to the medical device sector, said Friday it has bought sector firm Pulse Systems LLC for USD3.4m (EUR2.8m) in cash and USD1.75m in promissory notes due 2 January 2011.

In addition, UAHC will issue up to 1,608,040 ordinary shares to be given to the shareholders of California-based Pulse Systems.

The issue of new shares is subject to approval by UAHC's shareholders. If rejected, UAHC plans to give back 26% in Pulse Systems to its former owners.

Furthermore, UAHC has spent USD750,000 for offsetting Pulse Systems' bank liabilities and will invest further USD3.99m to redeem all preferred units of Pulse Systems in the next 24 months.

The takeover meets UAHC's "key investment criteria, including significant revenue contribution, positive EBITDA and long-term growth potential", company's chief executive William Brooks said in a press release.

Pulse Systems offers precision laser-cutting and processing of thin-wall tubular metal components, sub-assemblies and implants, primarily in the cardiovascular market. It booked USD9.2m in sales last year.

Country: ; USA

Sector: Healthcare

Target: Pulse Systems LLC

Buyer: United American Healthcare Corporation

Deal size in USD: 5.15m

Type: Corporate acquisition

Financing: Cash & Stock

Status: Closed

Comment: Deal size includes only cash and promissory note components.

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