Shares of Zomedica (ZOM -1.08%) climbed on Friday after the animal health specialist struck a deal to acquire Pulse Veterinary Technologies.
By the close of trading today, Zomedica's stock price was up 9.8% after rising as much as 21.2% earlier in the day.
Pulse's electro-hydraulic shock wave technology has an array of veterinary applications, such as tendon, ligament, bone, and wound healing. It uses high-energy sound waves to stimulate cells and release healing growth factors in animals.
The all-cash transaction values Pulse at $70.9 million.
Zomedica's management praised Pulse's razor-and-blades business strategy. In addition to the revenue the company earns from the initial sale of its shock wave generators, Pulse also generates recurring revenue from replaceable therapy handpieces.
"During our extensive due diligence process, we consistently were impressed by both the strength of the PulseVet team led by Adrian Lock and the solid business that they have built," Zomedica CEO Robert Cohen said in a press release. "We believe that this acquisition will enable us to enhance both of our organizations by what we learn from each other and add to the combined effort."
Zomedica said in May that it would use some of its $276.6 million in cash reserves to expand its product offerings beyond its Truforma diagnostics system for dogs and cats. The company's purchase of Pulse helps it do just that.
Zomedica intends to have its sales team market Pulse's new X-Trode handpiece, which does not require animals to be sedated, to accelerate its entrance into the veterinary market.