Financial firm KKR announced on Monday that it plans to invest $35 million in Signostics Ltd., an Australia-based company that makes handheld ultrasound devices. Signostics is a forerunner in the field of new diagnostic technology, and the investment from KKR gives Signostics the long-term funding it needs to research diagnostic settings more thoroughly so it can provide better services. The technology works for both animals and humans, and the company is looking to expand its contributions toward a more efficient healthcare system.
KKR, lead by shrewd investor Henry Kravis, knows how to make businesses work. The firm’s investment is an indicator of Signotics’s good health.
Signotics makes small, accurate ultrasounds compact enough to fit into the palm of a hand. The handheld machine is cheaper and more portable than ordinary machines, meaning that Signostics’s products may be used by more people in more places.
“KKR offers us the privilege of working with a highly-regarded, long-term capital partner will enable us to create next-level innovations and beyond, aimed at greater disruption and democratization of the global ultrasound market,” says Signostics’s CEO, Kevin Goodwin. KKR said that it is “thrilled” to be backing the company and making active contributions towards the betterment of the healthcare system.
Signostics was founded in 2005 in Adelaide, Australia. Its vision is to “be a world leader in portable point-of-care devices,” according to its site. An existing product portfolio, which includes a bladder scanner for better and non-invasive bladder measurements, has gained approval in the United States, Europe, and Japan. A new, yet-to-be-announced product will be released in 2016.
The investment in Signotics adds to KKR’s growing interest in equity capital healthcare. Recently KKR has made other investments in the medical field, including in Cohera Medical, developer of surgical adhesives and sealants, and in drug company Coherus Biosciences.
Because of KKR’s investment, Signotics can deliver improved and versatile medical products to the communities who need them. The company hopes that the ultrasound scanners will become a necessary tool for medical professionals.
“We feel very fortunate to have gained the support of KKR as we set out to build on our work in this field over the last decade,” said Goodwin.