ATS Medical, a Minneapolis-based manufacturer and marketer of cardiac surgery products, today announced it will acquire the surgical cryoablation business of CryoCath Technologies, Montreal, in a contingency purchase agreement valued between $22 million and $30 million in cash payments.
The acquisition would add two cryoablation product linesSurgiFrost and FrostByteused in the treatment of cardiac arrhythmias to ATS portfolio, and would bring the company to profitability a year ahead of schedule, according to ATS officials.
From Day One, this transaction is accretive to the company, said ATS President and Chief Executive Officer Michael Dale. We now expect to be profitable during the second half of 2008.
ATS, which currently distributes CryoCath products, will pay $22 million upon closing of the deal, which is expected to take place around June 30. Under the deals arrangements, an additional $8 million in guaranteed and performance-contingent payments will be made to CryoCath over the next few years. -- by Shawn Rhea