Opto Circuits inks pact to sell diagnostic cardiology products

NEW DELHI: Opto Circuits today said it's group firm Cardiac Science has signed an agreement to sell its diagnostic cardiology product line to US based Mortara Instrument Inc for a consideration of $ 21 million (around Rs 114 crore).

The proceeds will be used to retire a part of debt and the rest will be used in business operations, it added.

"The transaction does not include MySense, the novel, wearable, single-patient ECG recorder system and the resuscitation business unit that markets automated external defibrillators (AEDs) worldwide," Opto Circuits said.

The deal underlines the management strategy to rationalise its product offering by increasing focus on products with higher growth margin and potential for faster growth, it added.

"Divestiture of the diagnostic cardiology product line will bring more strategic focus to Cardiac Science. The company will now be able to exclusively focus on innovation and the expansion of market share in its high-margin and high growth resuscitation business," Cardiac Science CEO Neal Long said.

Commenting on the development, Mortara Instrument Inc CEO Justin Mortara said: "The addition of these businesses to our organisation represents a marked opportunity to accelerate the introduction of Mortara's leading ECG technology to new markets."

Shares of Opto Circuits were today trading at Rs 60.85 per scrip on BSE, up 0.91 per cent from its previous close.