Advertise With UsAdvertise on our extensive network of industry websites and newsletters.
Get the PBR newsletterSign up to our free email to get all the latest PBR
news.US-based St Jude Medical and MediGuide, an Israeli based company, have announced the signing of a definitive merger agreement and simultaneous closing of the merger whereby St Jude Medical has acquired all of the outstanding shares of MediGuide including the 41.3% interest owned by Elbit Systems for $283 million in cash and the assumption of net liabilities totaling approximately $17 million.
Subscribe to our email newsletter
Terms of the transaction provide for St Jude Medical to pay $138 million of the purchase price in December 2008, with the balance due in two subsequent payments of $111 million in November 2009 and up to $34 million in April 2010.
With this transaction, MediGuide will become part of the St Jude Medical atrial fibrillation division. In connection with the transaction, St Jude Medical will record a special charge of approximately $300 million for in-process R&D in the fourth quarter of 2008.
Daniel Starks, chairman, president and CEO of St Jude Medical, said: “Today’s announcement reflects St Jude Medical’s commitment to product leadership and our strategy of supporting superior technology that gives physicians the most control possible in their effort to enhance patient outcomes.”
Gera Strommer, president and CEO of MediGuide, said: “We look forward to working with the St Jude Medical team. With their support, we will have the resources to more fully capitalize on MediGuide’s innovations and successfully move through the next stage of our development plans.”
Joseph Ackerman, president and CEO of Elbit Systems, said: “We are pleased to have a company such as St Jude Medical recognize the value of MediGuide. We believe the acquisition provides MediGuide an excellent opportunity to continue its growth, while allowing Elbit Systems to focus on its core business areas.”