U.S. medical technology developer CareFusion has agreed to buy a 40% stake in Israel’s Caesarea Medical Electronics for $100 million, CareFusion announced Monday.
The closely held Israeli maker of infusion and syringe pumps will continue to operate as an independent company, but under the agreement, the California-based CareFusion has the right to increase its stake to make it a majority shareholder.
“This investment creates a strategic, long-term relationship with CME, which has great people and great technology that is very complementary to our infusion portfolio,” said Kieran Gallahue, chairman and CEO of CareFusion. The U.S. company offers products and services, including infusion pumps and patient identification systems, that are aimed at reducing medication errors and hospital-acquired infections.
The compact, portable infusion and syringe pumps designed and manufactured by Casesarea Medical Electronics are used in MRI procedures and epidural anesthesia, and can be used in hospitals or at home. The devices are sold in 60 countries.
CareFusion, which employs 15,000 people around the world and has previously worked with the Israeli company, said it expects to complete the purchase of the 40% stake by the end of March.
Casesarea Medical Electronics was founded 20 years ago by Swi Barak, who has owned and managed the company since then. Earlier this year, Barak invested 64 million shekels ($18.3 million) in the company that operates the Trans-Israel Highway.