Carmel-based Dormir Inc. acquired a string of sleep-study centers and equipment stores in California, Oregon and Utah, making it the nation’s second-largest provider of sleep-diagnostic services in the country, the company announced Friday morning.
The sleep centers and equipment stores are part of two subsidiaries of Australia-based Avastra Sleep Centres Ltd. They give Dormir nearly 80 locations in 16 states.
Financial terms of the deal were not disclosed.
“This transaction is the third acquisition for Dormir in 2009 and supports our corporate strategy of expanding our presence throughout the U.S.,” said Dormir CEO Timothy Miller in a statement.
Dormir, which Miller launched in 2005, focuses on diagnosing patients with sleep apnea, which has been shown to contribute to numerous chronic diseases, such as hypertension.
From Avastra, Dormir acquired Sleepwell Partners and Pacific Sleep Medicine. Dormir will now manage Pacific's medical practice, which includes seven physicians specializing in sleep medicine and research.
Dormir acquired 12 of its locations earlier this year when it bought two Florida companies. In July, it announced it had raised $12 million in venture capital and was looking to buy as many as 10 more companies this year.
Miller hopes to grow the company to 170 locations and more than $100 million in revenue by the end of 2012.
Miller said he started to look for acquisitions after the federal Medicare program cut reimbursement for sleep therapy last fall, which has weakened many of his competitors. He said Dormir has continued to grow even after the reimbursement cuts.
Dormir is still smaller than SleepMed Inc., which has corporate offices in Massachusetts and South Carolina. It operates 160 sleep centers around the country.