The players involved in the $200 million acquisition of an Indianapolis medical device company say it could lead to significant opportunities for growth. PTS Diagnostics says the deal with China-based Sinocare allows the Indy company to double down on development and expansion plans. Chief Executive Officer Bob Huffstodt says the company’s manufacturing, administration and R&D operations will remain in Indianapolis, with plans to keep workers "right where they are." He says PTS gives Sinocare broad reach into new markets and access to "additional brain power."
The companies announced the acquisition Monday. Upon closing, which is expected later this year, PTS will be a wholly-owned subsidiary of Sinocare. The Indiana company has 215 employees, including 149 in Indianapolis. PTS designs, manufactures and distributes its biometric testing devices for markets in more than 135 countries.
Huffstodt says Sinacore was attracted to PTS Diagnostics’ "well-rounded team," which includes manufacturing associates, chemists, engineers, salespeople and informatics and data management staff. He says the acquisition will allow PTS to continue to grow that staff in Indianapolis.
The acquisition marks the latest bit of momentum from Indiana’s growing life sciences industry. In February, the Indiana Business Research Center at Indiana University released a study pegging the Indiana sector’s economic impact at $62 billion, with wages averaging close to $97,000 a year. Also that month, the Indiana Biosciences Research Institute announced an $80 million grant from Lilly Endowment Inc. and a $20 million grant from the Eli Lilly and Co. Foundation. The $360 million IBRI is the anchor tenant of the planned 16 Tech innovation district in Indianapolis.
Huffstodt says the deal is an endorsement of Indiana as a "thriving center" for life sciences.
Huffstodt says the acquisition is an illustration of Indiana’s life sciences strength.