Acquisition Adds Innovative, Non-Invasive Hemodynamic Monitoring Products and Disposable Sensors. Expands SonoSite’s Sales Channel to Large Market for Cardiovascular Disease Management.
SonoSite, Inc., the world leader and specialist in hand-carried and point-of-care ultrasound, today announced that it has reached an agreement to acquire CardioDynamics International Corporation. Under the terms of the agreement, SonoSite will acquire CardioDynamics in exchange for $1.35 per share in cash. The aggregate transaction value will be approximately $10.0 million, or $12.3 million net of cash and debt.
CardioDynamics reported revenues of $24.5 million in 2008. Its impedance cardiography (ICG) product line provides non-invasive assessment of cardiac output and other hemodynamic parameters in the physician’s office, outpatient clinic or hospital. This information allows physicians to assess and diagnose underlying cardiovascular disorders, customize and target treatment, monitor the effectiveness of prescribed medications and identify potential complications. The company’s latest generation product, the BioZ® Dx system, integrates ICG with electrocardiography (ECG), providing the ability to assess both mechanical and electrical cardiovascular function.
“The acquisition of CardioDynamics is part of a strategic initiative that moves SonoSite forward toward our long-stated goal of adding clinical value and reducing healthcare system costs in cardiovascular disease management. CardioDynamics is the platform we will build upon to achieve this goal,” said Kevin M. Goodwin, SonoSite President and CEO.
Mr. Goodwin continued, “CardioDynamics offers non-invasive, cost saving products and technology. Current products, as well as those in the pipeline, represent attractive innovation opportunities for point-of-care medicine. In addition, CardioDynamics has established a solid direct sales channel in the U.S. with 38 sales representatives calling on cardiologists, internal medicine and family medicine practitioners, primarily in physician office settings. We believe we can leverage this channel to build on our existing footprint in point-of-care markets.”
“This milestone event is an important acknowledgement of the value that CardioDynamics has produced in creating a new technology for the assessment of cardiovascular disease,” said Michael K. Perry, CEO of CardioDynamics. “We are pleased to join with an industry leader in point-of-care medicine who shares our vision of creating non-invasive technologies that improve outcomes and reduce the cost of patient care. The expanded platform that the combination with SonoSite provides will benefit our customers, employees and shareholders.”
The acquisition is conditioned upon approval by CardioDynamics’ shareholders as well as the satisfaction of other customary conditions. Approval by SonoSite’s shareholders is not required. The transaction is expected to close in the third quarter of 2009.
GCA Savvian acted as financial advisor and Fenwick & West LLP acted as legal counsel to SonoSite. Cain Brothers and Company LLC acted as financial advisor and Pillsbury Winthrop Shaw Pittman LLP acted as legal counsel to CardioDynamics.
Source: Sonosite
published: June 9, 2009 in: Cardio, Companies, News, Products, Specialty