Cardiac Science, Irvine, Calif., a manufacturer of public-access defibrillators, and Quinton Cardiology Systems, Bothell, Wash., which also makes cardiology products, agreed to merge under a holding company to reduce operating expenses $10 million annually. The merger is expected to close in the third quarter. Officials said the holding company, Cardiac Science Corp., would have a broad portfolio of cardiology-related products and projected 2005 revenue of $180 million. Revenue is projected to increase by double-digit percentage points in 2006.
In other deals between suppliers, Japan's second- and sixth-largest drug companies -- Sankyo Co. and Daiichi Pharmaceutical Co. -- agreed to integrate under a joint holding company effective Oct. 1, according to Moody's Investors Service. The combined company could have a stronger market position, better research-and-development capabilities, improved operations and an enhanced clinical development pipeline, Moody's said. The agency said there was not enough information to assess the deal's impact on ratings. -- by Cinda Becker