The financial crisis may have upended the initial public offerings of some devicemakers but it didnt stop St. Jude Medical from going on a year-end $533 million buying spree. St. Jude Medical, which develops medical technology and services, announced last month that it had purchased cardiovascular devicemaker Radi Medical for $250 million in cash, and intra-body navigation technology company MediGuide for $283 million and the assumption of about $17 million in net liabilities.
St. Jude Medical is buying the Uppsala, Sweden-based Radi Medical after seeing favorable research on the companys physiologic-guided assessment tool for coronary lesions. This acquisition will accelerate the expansion of St. Jude Medicals cardiovascular-growth platform, said Daniel Starks, chairman, president and chief executive officer of St. Jude, in a written statement.
MediGuide, based in Haifa, Israel, develops technology to track in real time tiny sensors that can be placed on needles, wires and catheters to increase the information physicians gather during catheterization and other minimally invasive procedures.
MediGuides technology may offer St. Jude Medical further growth. The company said it will incorporate the technology into its atrial fibrillation products as well as explore other ways in which the real-time tracking might be useful, such as in cardiac rhythm management, interventional cardiology, neurology and structural heart disease products.
The deal covers all outstanding shares of the company, including the 41.3% interest owned by Elbit Systems, an international defense electronics company. St. Jude Medical expects to record a $300 million special charge for the fourth quarter of 2008 for the MediGuide acquisition.
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