CareFusion is investing $100 million in Israeli infusion pump maker Caesaria Medical Electronics for a 40 percent stake in the company and a foot in the ambulatory pump market.
The San Diego, Calif., devicemaker, which makes acute care pumps, will also gain access to new overseas markets, since CME sells the majority of its pumps outside the U.S., said CareFusion spokesman Troy Kirkpatrick. “It helps our company from a globalization perspective.”
In exchange, CME gains access to a medical device company with a broader range of products and a greater presence in the U.S. market, he said. The two companies have had a relationship since CareFusion purchased CME technology that helped it bring a pump to market outside the U.S.
Under the terms of the agreement, announced Monday, CME will maintain its autonomy and retain its distributor networks across 60 countries as CareFusion ups its investment in the company to the point where it becomes a majority owner.
The transaction is expected to be completed by the end of March. — Lena Freund