Medical devicemakers EV3, Plymouth, Minn., and FoxHollow Technologies, Redwood City, Calif., have inked a $780 million merger agreement that would create a new company valued at approximately $1.7 billion, according to a joint news release issued today.
The merger would create a combined medical-device portfolio featuring peripheral and neurovascular disease-treatment products, including stents, embolic-protection devices, and infusion catheters and wires. The resulting company will have operations or distribution representatives in more than 60 countries and 1,500 employees.
Under the merger terms, FoxHollow stockholders will receive 1.45 shares of EV3 common stock plus $2.75 for each share of FoxHollow common stock that they own. EV3 shareholders will acquire a 59% majority ownership in the new company, with FoxHollow shareholders receiving 41%. Jim Corbett, president and chief executive officer of EV3, will become chairman and CEO of the new company, while FoxHollow founder and CEO John Simpson will serve as vice chairman and chief scientist for the company.
Company officials expect to complete the deal by the end of 2007. The final merger is subject to customary closing conditions, as well as antitrust and FoxHollow shareholder approval. EV3 shareholders have already approved the proposed merger. -- by Shawn Rhea