LONE TREE, Colo.--(BUSINESS WIRE)--Zynex, Inc. (OTCBB: ZYXI), a provider and developer of non-invasive medical devices for electrotherapy and stroke rehabilitation, neurological diagnosis and cardiac monitoring, announced the acquisition of substantially all the assets of NeuroDyne Medical, Corp., through its subsidiary Zynex NeuroDiagnostics, Inc., with an effective date of March 9, 2012.
Zynex acquired substantially all of NeuroDyne's assets for the sum of $320,000 payable at closing ($145,000 in cash and $175,000 in restricted common stock), and an additional $100,000 in cash payable sixty days from the closing date. The transaction also includes a seven year earn-out incentive, based on a percentage of net revenue generated by NeuroDyne products. NeuroDyne's CEO was appointed as VP of Technical Support for the Zynex NeuroDiagnostics subsidiary.
NeuroDyne Medical, Corp., located in Cambridge, Massachusetts, is an 18 year old manufacturer of advanced medical devices for non-invasive measurement of sEMG and autonomic nervous systems. The devices can be used for evaluation and treatment of neurological and neuromuscular disorders as well as education and research. NeuroDyne's products include medical instruments, sensors, disposable electrodes and software that offer sEMG, EKG, EEG, respiration, skin temp, EDR, EDL, peripheral blood flow, IBI, heart rate, and heart rate variability. The products are sold and used by healthcare providers, educators and researchers. NeuroDyne's customers include some of the top health services providers in the country.
Thomas Sandgaard, CEO of Zynex, commented, "This acquisition is important for us as it adds established product lines and sales channels that we expect will fuel growth in our NeuroDiagnostics division. Our long-term goal is to generate sales and profits in our NeuroDiagnostics division that will match our electrotherapy division, Zynex Medical. Products in Zynex NeuroDiagnostics are sold domestically to clinics and hospitals as capital goods, and internationally through distributors."
Tahir Chaudhry, CEO of NeuroDyne, commented, "We are excited to join the Zynex team and leverage their existing sales, marketing and operations infrastructure to propel the growth of the NeuroDyne products. We very much look forward to serving NeuroDyne and Zynex customers with our current line of advanced medical devices that have helped thousands of healthcare providers provide healthcare to their patients. Working with Zynex will also help us enhance our product line to release new and innovative medical devices to our current and new US and International customers."
Zynex (founded in 1996), operates under three primary business segments; Zynex Medical, Zynex NeuroDiagnostics and Zynex Monitoring Solutions. Zynex Medical engineers, manufactures, markets and sells its own design of electrotherapy medical devices for electrotherapy, used for pain management and rehabilitation. Zynex Medical's product lines are fully developed, FDA-cleared and commercially sold world-wide. Zynex NeuroDiagnostics, sells the company's proprietary NeuroMove device designed to help stroke and spinal cord injury patients and is currently expanding into markets for EMG, EEG, sleep pattern, auditory and nerve conductivity neurological diagnosis devices through product development and acquisitions. Zynex Monitoring Solutions, currently in the development stage, has been established to develop and market medical devices for non-invasive cardiac monitoring. For additional information please visit: http://www.ir-site.com/zynex/default.asp .
NeuroDyne Medical, Corp., located in Cambridge, Massachusetts, is an 18 year old compliant manufacturer of advanced medical devices for non-invasive measurement of sEMG and autonomic nervous systems that can be used for evaluation and treatment of neurological and neuromuscular disorders as well as education and research.
For additional information please visit: http://www.neurodynemedical.com/
Safe Harbor Statement
Certain statements in this release are "forward-looking" and as such are subject to numerous risks and uncertainties. Actual results may vary significantly from the results expressed or implied in such statements. Factors that could cause actual results to materially differ from forward-looking statements include, but are not limited to, the need to obtain additional capital in order to grow our business, our ability to engage additional sales representatives, the success of such additional sales representatives, the need to obtain FDA clearance and CE marking of new products, the acceptance of new products as well as existing products by doctors and hospitals, larger competitors with greater financial resources, the need to keep pace with technological changes, our dependence on the reimbursement from insurance companies for products sold or rented to our customers, acceptance of our products by health insurance providers, our dependence on third party manufacturers to produce our goods on time and to our specifications, implementation of our sales strategy including a strong direct sales force, the uncertain outcome of pending material litigation and other risks described in our filings with the Securities and Exchange Commission including the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2010.
SOURCE: Zynex NeuroDiagnostics
Anthony Scalese, CFO, 303-703-4906