Select comfort acquired bam labs

Select comfort acquired bam labs

Select Comfort, the leader in sleep innovation, has acquired BAM Labs, Inc. the world’s leading provider of Smart Bed TechnologyTM solutions and the Silicon Valley-based pioneer of biometric sensor and sleep monitoring for data-driven health and wellness. Select Comfort previously held an equity investment in BAM of approximately 18 percent and is now acquiring the remaining interest for approximately $58 million in cash.

Select Comfort knows BAM well, having partnered with the company since 2012 in the development and commercialization of SleepIQ® technology. BAM will operate as an independent business unit called SleepIQ® LABS, which will continue to be based in San Jose, Calif.

“Together, Sleep Number and SleepIQ LABS will continue to redefine and elevate what consumers can expect from their sleep experience,” said Shelly Ibach, president and chief executive officer of Select Comfort. “This acquisition supports our growth and future financial performance by accelerating innovation at a time when consumers are rapidly adopting new digital tools and using their personal data to improve health and wellness.”

SleepIQ technology measures each sleeper’s presence, movement and average heart and breathing rates, and analyzes the data with a proprietary algorithm to provide consumers with an individual daily SleepIQ® score and supporting data. Unlike data from other devices, this knowledge is complemented by the ability to make adjustments to the firmness of each person’s side of the bed – their Sleep Number® setting – for optimized sleep. Consumers have quickly adopted SleepIQ technology as part of their daily life and are using this personal data to improve their sleep, and therefore their overall health and wellness.

Commenting on the merger, Rich Rifredi, co-founder and chief executive officer of BAM said, “We share Sleep Number’s passion for innovation and dedication to its mission to improve lives. Sleep Number will provide extensive consumer expertise and resources as we further develop smart, connected biometric solutions that improve sleep and wellness.”

“We are very excited to work even more closely with SleepIQ LAB’s team of talented engineers as we continue to innovate with sleep data and insights in support of our mission of improving lives by individualizing sleep experiences,” said Annie Bloomquist, senior vice president and chief product officer of Select Comfort. “This acquisition strengthens our intellectual property and our competitive advantages.”

Select Comfort also announced today that it has obtained a new $100 million senior secured revolving credit facility, though it does not expect to draw on the facility for the acquisition, which is expected to close in the third quarter of 2015, subject to customary closing conditions. The

acquisition is not expected to be dilutive to the company’s full year 2015 earnings per share (EPS), and is expected to be accretive to EPS within two years.

Select Comfort is being represented by the Palo Alto, Calif. law firm Wilson Sonsini Goodrich & Rosati, the Minneapolis-based law firm Oppenheimer Wolff & Donnelly LLP, and is also being advised by Citigroup Global Markets Inc.