Avanos Medical this week announced it entered into a definitive agreement to acquire Diros Technology.
Toronto-based Diros Technology develops radiofrequency (RF) products that are used to treat chronic pain conditions. Its technology delivers 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 company’s RF Trident technology will further enhance Avanos’ pain management treatment options and complement its Coolief cooled RF 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,” CEO Joe Woody said in a news release. “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.”
Avanos Medical anticipates the transaction to close in the third quarter of 2023 and is subject to customary closing conditions. Avanos plans to finance the acquisition through. Combination of funds from its existing credit facility and available case. The new business will be immediately accretive to revenue growth, gross margins, operating margins and EPS.