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Medical technology company Greatbatch is acquiring Michigan-based implantable medical device design firm NeuroNexus Technologies for roughly $12 million. The deal includes assumption of debt and future considerations (undisclosed).

NeuroNexus, founded in 2004, specializes in high-value neural interface technology, components and systems for neuroscience and clinical markets. The entity possesses a vast portfolio of intellectual property, core technologies and capabilities to facilitate the development of innovative neural interface devices across a broad range of functions including neuromodulation, optical stimulation and targeted drug delivery applications.

The acquisition is expected to boost Greatbatch’s foothold across cardiovascular and neuromodulation markets. The pooling of NeuroNexus’ technologies and Greatbatch’s capabilities will enable the combined entity to provide new world-class research products and systems to neuroscientists across the globe. Greatbatch expects the acquisition to be non-dilutive to its adjusted operating earnings in 2012.

Greatbatch is a leading producer and supplier of batteries, capacitors and components used in implantable medical devices. The company’s top customers include Boston Scientific , Johnson & Johnson , Medtronic and St. Jude .

Greatbatch has been acquiring complementary businesses over the last few years to boost sales. The company, in late 2011, bought Oregon-based battery supplier Micro Power Electronics. The acquisition is expected to diversify Greatbatch’s revenues by broadening its foothold in the portable medical battery market and stimulating growth in other key areas.

Greatbatch continues to invest in developing medical devices for its major OEM clients. The company’s pipeline is healthy with a number of products currently under development that are expected to support growth in the long run.

We feel that operating results will be supported by strength at the company’s orthopedic business and strategic investments. Greatbatch is expected to report its fourth-quarter 2011 results on February 23. We currently have an Outperform recommendation on the stock.

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