UTICA — ConMed Corp. (NASDAQ: CNMD) announced today it will acquire Westborough, Mass.–based Viking Systems, Inc. (OTCBB: VKNG) in a $22.5 million deal.
Viking develops and manufactures 3D and 2D visualization systems for minimally invasive surgery. Following the merger news, Viking released its second-quarter earnings results, showing an 11 percent decline in sales from $2.5 million to $2.2 million for the quarter.
Viking reported a net loss of $890,000, or 1 cent per share, for the second quarter, compared with a net loss of $860,000 or 1 cent, a year earlier.
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Viking’s stock reacted positively to the acquisition news, with share prices increasing 38.5 percent to 26 cents per share by 10:45 a.m. ConMed’s stock, on the other hand, dropped 6 cents in trading to $26.84 per share.
“The Viking line of 3D high-definition surgical video products represents a strategic addition to our general surgical imaging franchise,” ConMed President and CEO Joseph Corasanti said in a news release announcing the deal. “Viking is at the forefront of three-dimensional HD surgical imaging, and we believe that merging this technology with our established worldwide marketing and sales team will expand the use of superior surgical visualization benefiting both surgeons and their patients.”
ConMed carries its own video system for use during surgery, but in recent years has reported sluggish sales of the $50,000-per-operating-room system as hospitals hold off on capital expenditures. More recently, ConMed has shifted its marketing focus to its single-use products and saw sales for those items grow 7.5 percent in the second quarter.
Viking’s lead product is its 3D-HD Vision System, an advanced three-dimensional vision system that uses a flat-screen monitor and passive glasses. Surgeons use the system during minimally invasive laparoscopic urology, gynecologic, bariatric, cardiac, neurologic, and general surgery. The product is designed to fill the gap between conventional two-dimensional systems and three-dimensional systems available as part of robotic systems.
“This is a significant milestone for Viking,” Jed Kennedy, the company’s president and CEO, said in the release. “We are excited to join together with ConMed, which shares our vision for 3D-HD surgical imaging and has an established reputation for innovation and excellent customer service.”
ConMed expects its current two-dimensional surgical video research and marketing team in Santa Barbara, Calif. to consolidate into the Viking group in Massachusetts over the next year.
Headquartered at 525 French Rd., Utica, ConMed (www.conmed.com) manufactures surgical devices and equipment for minimally invasive procedures and patient monitoring. The company employs about 3,400 people worldwide.
Contact DeLore at tdelore@tmvbj.com
