Heska Corp. acquires Cuattro assets for $8.2M
Dec 3, 2018
LOVELAND -- Heska Corporation (NASDAQ: HSKA), a provider of advanced veterinary diagnostic and specialty products, announced its Heska Imaging, LLC subsidiary reached agreement with Cuattro, LLC to purchase certain software and related assets and to terminate the related license and supply agreements between Heska Imaging and Cuattro. The related license and supply agreements were originally agreed to as part of the Company's 2013 acquisition of a majority interest in Golden-based Cuattro Veterinary USA, LLC, a predecessor entity to Heska Imaging. The company's CEO and president, Kevin Wilson, and related family persons or entities own a 100% interest in Cuattro. The aggregate purchase price of the software is $8.2 million, consisting of $2.75 million in cash and 54,763 shares of Heska's common stock. "We have received investor feedback advising it would be best for us to eliminate the related party obligations, expenses, balances, and reporting associated with Cuattro since 2013,” said Scott Humphrey, Heska’s chair. “The transactions address these concerns and are in the best interest of our stockholders. We believe the transactions will eliminate distractions and allow us to more strongly focus on our collective success in 2019 and beyond." The company said it expects the required closing conditions to be met and the transactions to close prior to the end of 2018. The transactions also require Cuattro, without further compensation, to assist Heska Imaging to implement data migration to a third-party image-hosting platform and to continue to provide hosting and other cloud-related services to Heska Imaging until completion of this obligation, under certain terms, provided Heska Imaging cooperates with Cuattro to complete the transition.