Zynex Buys NeuroDyne Medical

Zynex Inc.—a developer of non-invasive medical devices for electrotherapy and stroke rehabilitation, neurological diagnosis and cardiac monitoring—has acquired NeuroDyne Medical, Corp.

Zynex paid $320,000 ($145,000 in cash and $175,000 in restricted common stock), and an additional $100,000 in cash payable sixty days from the closing date. The transaction also includes a seven year earn-out incentive, based on a percentage of net revenue generated by NeuroDyne products. NeuroDyne’s CEO was appointed as vice president of Technical Support for the Zynex NeuroDiagnostics subsidiary.

NeuroDyne Medical Corp., located in Cambridge, Mass., is an 18-year-old manufacturer of advanced medical devices for non-invasive measurement of sEMG and autonomic nervous systems. The devices can be used for evaluation and treatment of neurological and neuromuscular disorders as well as education and research. NeuroDyne’s products include medical instruments, sensors, disposable electrodes and software that offer sEMG, EKG, EEG, respiration, skin temp, EDR, EDL, peripheral blood flow, IBI, heart rate, and heart rate variability. The products are sold and used by healthcare providers, educators and researchers.

Thomas Sandgaard, CEO of Zynex, said: “This acquisition is important for us as it adds established product lines and sales channels that we expect will fuel growth in our NeuroDiagnostics division. Our long-term goal is to generate sales and profits in our NeuroDiagnostics division that will match our electrotherapy division, Zynex Medical. Products in Zynex NeuroDiagnostics are sold domestically to clinics and hospitals as capital goods, and internationally through distributors.”

Tahir Chaudhry, CEO of NeuroDyne, commented, “We are excited to join the Zynex team and leverage their existing sales, marketing and operations infrastructure to propel the growth of the NeuroDyne products. We very much look forward to serving NeuroDyne and Zynex customers with our current line of advanced medical devices that have helped thousands of healthcare providers provide healthcare to their patients. Working with Zynex will also help us enhance our product line to release new and innovative medical devices to our current and new US and International customers.”

Based in Lone Tree, Colo., Zynex operates under three primary business segments: Zynex Medical, Zynex NeuroDiagnostics and Zynex Monitoring Solutions. Zynex Medical manufactures, electrotherapy medical devices for electrotherapy, used for pain management and rehabilitation. Zynex Medical’s product lines are fully developed, FDA-cleared and commercially sold worldwide. Zynex NeuroDiagnostics sells the company’s proprietary NeuroMove device designed to help stroke and spinal cord injury patients and is currently expanding into markets for EMG, EEG, sleep pattern, auditory and nerve conductivity neurological diagnosis devices through product development and acquisitions. Zynex Monitoring Solutions, currently in the development stage, has been established to develop medical devices for non-invasive cardiac monitoring.