MINNEAPOLIS, MN, September 23, 2021 – Northborne Partners acted as the exclusive financial advisor to International Biophysics Corporation (“IBC”) in the sale of its AffloVest respiratory therapy business to Tactile Systems Technology, Inc. (“Tactile Medical”) (Nasdaq: TCMD). The transaction closed on September 08, 2021.
AffloVest is an innovative portable, wearable vest that treats patients with serious and chronic respiratory disorders, including cystic fibrosis and bronchiectasis, as well as neuromuscular conditions, by managing airway clearance. AffloVest is the first truly portable, battery-powered, mobile during use High Frequency Chest Wall Oscillation (HFCWO) device. AffloVest’s patient-friendly design provides freedom and mobility intended to increase patient adherence and has been shown to reduce related healthcare costs including antibiotics, emergency room visits and hospitalizations.
The acquisition of AffloVest provides Tactile Medical with a differentiated, clinically validated HFCWO technology and access to a $5 billion addressable market opportunity in the U.S., namely Bronchiectasis. Bronchiectasis is one of the most common respiratory diseases in the U.S. (500,000 adults diagnosed) and is growing in the high single-digits annually. However, the U.S. market remains highly underpenetrated with more than 16 million living with COPD, over 4 million of whom may be affected by bronchiectasis.
Dan Reuvers, President and CEO of Tactile Medical commented, “The addition of AffloVest represents an ideal strategic fit for Tactile Medical as it aligns well with our focus of treating patients with underserved chronic conditions in the home. We expect to promote AffloVest’s patented, portable design, demonstrated clinical outcomes, and established reimbursement within the Durable Medical Equipment (DME) channel to drive AffloVest to contribute to our overall company goal of 20%+ revenue growth going forward.”
David Shockley, Chief Executive Officer and Founder of IBC commented, “We are excited to complete the sale of our AffloVest business and for the AffloVest’s next phase of growth under Tactile Medical’s stewardship. Tactile Medical has a world class management team with deep experience in the respiratory market, and is well-positioned to serve AffloVest customers, patients and respiratory clinicians going forward.”
Regarding Northborne’s involvement in the transaction, David added, “The Northborne Partners team has been a trusted advisor to IBC since the early days of AffloVest. Ken Higgins and Scott Theisen proved to be invaluable partners, both in positioning us for a successful transaction and throughout transaction negotiations and due diligence. They were aggressive advocates for IBC’s interests, and I am thrilled with the result.”
About Northborne Partners
Northborne Partners is a preeminent middle market investment banking firm focused on providing M&A advisory services to companies in the food & consumer, healthcare and industrials sectors, among others. It focuses on advising private business owners in the sale of their companies and has decades of experience sitting across the table from the most seasoned strategic and private equity buyers in the world. Northborne Partners is headquartered in Minneapolis, MN. For more information, please visit www.northborne.com.
About International Biophysics Corporation
International Biophysics Corporation brings to market innovative, disruptive medical devices and technologies that improve treatment therapies and patient outcomes. The company has a strong history of developing and launching innovative and disruptive technologies. Centered in a precision ISO 13485 certified, FDA registered, state of the art manufacturing facility, International Biophysics Corporation continues to research and develop advanced solutions for physicians and patients.
About Tactile Systems Technology, Inc. (DBA Tactile Medical)
Tactile Medical is a leader in developing and marketing at-home therapy devices that treat chronic swelling conditions such as lymphedema and chronic venous insufficiency. Tactile Medical’s Mission is to help people suffering from chronic diseases live better and care for themselves at home. The company’s unique offering includes advanced, clinically proven pneumatic compression devices, as well as continuity of care services provided by a national network of product specialists and trainers, reimbursement experts, patient advocates and clinicians. This combination of products and services ensures that tens of thousands of patients annually receive the at-home treatment necessary to better manage their chronic conditions. Tactile Medical takes pride in the fact that its solutions help increase clinical efficacy, reduce overall healthcare costs and improve the quality of life for patients with chronic conditions.
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