ResMed Inc. completed the acquisition of Reciprocal Labs Corporation from Kapor Capital, Safeguard Scientifics, Inc., McKesson Ventures, Aptar Group, 3M Ventures, Social Capital and others for approximately $240 million.
January 06, 2019
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ResMed Inc. (NYSE:RMD) entered into a definitive agreement to acquire Reciprocal Labs Corporation from Kapor Capital, Safeguard Scientifics, Inc. (NYSE:SFE), McKesson Ventures, Aptar Group, 3M Ventures, Social Capital and others for approximately $230 million on December 3, 2018. Safeguard Scientifics, Inc. expects to receive cash proceeds of $41.4 million, which excludes an amount of additional proceeds to be held in escrow. ResMed will fund the acquisition primarily with its credit facility. Reciprocal Labs will continue to operate as a standalone business within ResMed's Respiratory Care portfolio. There will be no immediate changes to management, locations or business processes. David Van Sickle, co-founder and Chief Executive Officer of Reciprocal Labs will continue in his current role, reporting to ResMed Respiratory Care President Richie McHale.
The transaction is subject to customary closing conditions, including regulatory approvals and is expected to close before the end of the third quarter of ResMed's fiscal year 2019 (March 30, 2019). As on December 21, 2018, the transaction got approved by Federal Trade Commission. As of December 4, 2018, the transaction is expected to close by March 30, 2019. Upon closing, the transaction is expected to have a dilutive impact on ResMed's quarterly non-GAAP earnings per share in the range of $0.01 to $0.02 during fiscal year 2019. DLA Piper acted as legal advisor to ResMed's. John Koski and Robert Lowe of Allen & Company LLC is serving as exclusive financial advisors to Reciprocal Labs. Michael Esquivel, Ethan Skerry, Victoria Lupu, Patrick Grilli, Jeff Zhang, Joanna Xu, Matthew Cantor, Sarah Ghulamhussain, Stefano Quintini, Spencer Glende, Andrew Whitehead, Floris de Wit, Jefferson Lin, Lael Bellamy, Karen Graefin vom Hagen, Shitel Chanan, Will Skinner and Michael Knobler of Fenwick & West LLP are serving as its legal counsel to Reciprocal Labs.
ResMed Inc. (NYSE:RMD) completed the acquisition of Reciprocal Labs Corporation from Kapor Capital, Safeguard Scientifics, Inc. (NYSE:SFE), McKesson Ventures, Aptar Group, 3M Ventures, Social Capital and others on January 6, 2019. The purchase price of Reciprocal Labs Corporation was approximately $240 million, which adjusts for cash acquired and debt assumed.
Safeguard Scientifics, Inc. is a provider of capital and relevant expertise to technology-driven businesses. The Company offers strategic, operational and management support to certain of its ownership interests, which include defining short and long-term strategic goals; identifying and planning for the critical success factors to reach these goals; identifying and addressing the challenges and operational improvements required to achieve the critical success factors and, ultimately, the strategic goals; identifying and implementing the business measurements that the Company and others are apply to measure a companyâs success; and identifying sources of and providing capital to drive growth. It also continues to hold relatively small equity interests in other enterprises where it does not exert significant influence and do not participate in management activities. The Company's subsidiaries include Bonfield VII, Ltd., Safeguard Delaware, Inc., SFE Properties, Inc., and others.
ResMed Inc. completed the acquisition of Reciprocal Labs Corporation from Kapor Capital, Safeguard Scientifics, Inc., McKesson Ventures, Aptar Group, 3M Ventures, Social Capital and others for approximately $240 million.
SAFEGUARD SCIENTIFICS, INC. 
