Minnetonka's Uroplasty Inc. officially changed its name to Cogentix Medical Inc. on Tuesday as it completed a merger that will double its annual revenue.
The ultimate goal, however, is more ambitious.
"This gets us to $50 million. We expect to do additional acquisitions, partnerships going forward. We want to build a medical device company of critical mass," said Cogentix Chief Financial Officer Brett Reynolds. "This puts us on our way, but there is more to come. Our aspiration is to be $100 million in three years."
On Tuesday, Uroplasty completed an all-stock merger it announced in December with a New York device maker called Vision-Sciences, Inc. Uroplasty shareholders end up owning 63 percent of the combined company, Cogentix, which starts its new fiscal year Wednesday.
The new company will be based in Uroplasty's existing building at 5420 Feltl Road, Minnetonka. Uroplasty's management team will run the combined entity and retain their positions, including CFO Reynolds and CEO Rob Kill. Uroplasty's five board members will be joined on the new board by three appointees from Vision-Sciences. Shares will trade on the Nasdaq exchange under the ticker CGNT, the company said.
Before the deal, both publicly held companies were in need of reinvigorating.
Uroplasty, a midsize Minnesota med-tech company specializing in incontinence devices, had revenue between $22 million and $25 million for three years running. Its main devices are the Urgent PC Neuromodulation System for overactive bladder and Macroplastique injectable implants for stress urinary incontinence.
Vision-Sciences, which was legally based in Delaware but kept its headquarters in Orangeburg, N.Y., specialized in devices called endoscopes used to peer deep in the body and a related disposable sheath that acts as a barrier to prevent the spread of infectious disease. Company revenue has hovered between $15 million and $17 million for three years in a row.
"This merger is expected to accelerate the growth," Reynolds said. "We expect the growth of the combined company to be faster than what either company could have done on its own."
To that point, one of Vision-Sciences' key weaknesses was its old distribution agreement with Michigan-based device company Stryker.