In a union of cardiac device firms, St. Jude Medical of St. Paul, MN, has agreed to purchase EP MedSystems of West Berlin, NJ, for $92.1 million.
Under the terms of the deal, EP MedSystems shareholders will receive $3.00 for each EP MedSystems share they own, with the option of receiving that amount in cash or St. Jude Medical common stock.
St. Jude Medical will issue 40% of the total merger consideration in St. Jude Medical common stock and 60% in cash. St. Jude Medical's board has approved an additional stock buyback authorization of $50 million, which increases St. Jude Medical's share repurchase authorization from $250 million to $300 million. The companies believe the deal will close in the third quarter of 2008.
The acquisition will give St. Jude two new areas of growth in its atrial fibrillation and electrophysiology (EP) catheter businesses, by giving the company access to EP MedSystems' EP-WorkMate computerized EP workstation and EP-4 computerized cardiac stimulator.
The deal will also help St. Jude enter the intracardiac ultrasound echocardiography (ICE) market courtesy of EP MedSystems' ViewMate II intracardiac ultrasound system and ViewFlex Plus ICE catheter, which is scheduled for market release this quarter.
Related Reading
EP MedSystems reports Q4 revenue growth, March 14, 2008
EP MedSystems posts Q3 results, November 2, 2007
EP MedSystems adds revenues in Q2, August 15, 2007
St. Jude Medical inks Lumedx development deal, July 6, 2006
St. Jude Medical gets CE Mark, June 16, 2006
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