Otto Bock Healthcare, Duderstadt, Germany, became the sole owner of Quebec, Canada-based Neurostream Technologies. Otto Bock acquired the 44.4 percent interest held by its joint venture partner, Victhom Human Bionics, Saint-Augustin-de-Desmaures, Quebec, for $10 million (CAD) in cash plus royalty payments on the future net sales of the Neurostep® System and the eventual monetization proceeds of Neurostream’s sleep apnea and epilepsy technologies.
The sale was triggered by a call right in favor of Otto Bock to acquire Victhom’s indirect interest in Neurostream, as Neurostream failed to achieve certain partnership milestones by May 1, 2010, linked to the European certification of the Neurostep System.
The effective date of the transaction will be June 30, 2011, at which time Otto Bock will pay the first tranche of $5 million (CAD) of this consideration, the balance being payable on February 1, 2012, and secured by a first-demand irrevocable bank guarantee.
“Neurostimulation is clearly identified as a further driver of growth for Otto Bock that opens a new technological field for us,” said Johannes Schneider-Littfeld, CEO of Neurostimulation, Otto Bock. “Further to our work during the last years, we will now be able to consolidate all neurostimulation activities of the group and reach synergies in development, manufacturing, and sales and marketing with the other neurostimulation sites: Neurodan in Aalborg, Denmark, and Otto Bock, Vienna, Austria.”