Medical technology supplier Hillrom has agreed to acquire Breathe Technologies, the US-based respiratory aid developer backed by medical products group Johnson & Johnson, for $130m in cash.
Founded in 2005, Breathe has developed a device called the Life2000 Ventilation System. It features a handheld, battery-powered ventilator that undocks from the main tabletop unit to help a patient breathe while they move through indoor environments such as households or hospitals.
Life2000 has received market clearance from the US Food and Drug Administration, but Breathe owns more than 100 patents for concepts that would mainly help treat respiratory disease.
The company’s other planned products include a nasal pillow interface that will help address respiratory conditions. It generates about $10m in annual turnover.
Hillrom already owns a number of respiratory care technologies, including portable airway-clearance vests and a non-invasive cough support system. It also offers technologies that help respiratory disease patients regain mobility earlier in the recovery process by supporting them in conducting physical activity.
The transaction is expected to close by the end of 2019. Breathe has received approximately $62m in funding, according to regulatory filings and press releases.
The company secured $12.7m from undisclosed investors in 2017, seven years after Johnson and Johnson contributed to a $23m series C round through the corporate venturing subsidiary now known as Johnson & Johnson Innovation – JJDC.
Venture capiral firm DAG Ventures led the series C round with contributions from Delphi Ventures, Synergy Ventures and Kleiner Perkins Caufield & Byers. The latter investor had already led Breathe’s $15m series B in 2008.