Inogen Inc. agreed to acquire privately held New Aera Inc., a manufacturer of portable noninvasive ventilators.
As part of a definitive agreement, Inogen will pay about $70.4 million in cash at closing, with potential earn-out payments of up to $31.4 million based on achieving certain milestones.
Inogen will separately acquire certain intellectual property assets from an affiliate of New Aera in connection with the transaction.
The Goleta, Calif.-based medical technology company expects to complete the transaction in August.
Inogen will incorporate New Aera's Food and Drug Administration-approved Tidal AssistÒ Ventilator, or TAV, system technology into its oxygen concentrators. The company expects the technology to strengthen its position in its core oxygen therapy market and expand its footprint into the noninvasive ventilation market.
In the short to intermediate term, the company also plans to sell TAV systems through its multiple sales channels.