• Carrot Medical (Boston), a designer of imaging display systems, and Mavig (Munich), a manufacturer of medical imaging monitor suspension systems, executed a global marketing and sales channel partnership agreement. It provides a semi-exclusive contract for the sale of all products through Mavig's global sales channel while offering Mavig access to the next generation of integrated medical imaging display technology.

• Medtronic (Minneapolis) reported that it has completed the acquisition of Invatec (Roncadelle, Italy), a developer of medical technologies for the interventional treatment of cardiovascular disease. The acquisition includes two affiliated companies: Fogazzi (Brescia, Italy) which provides proprietary polymer technology to Invatec; and Krauth Cardio-Vascular (Hamburg, Germany), which has successfully grown Invatec's market position in Germany. Medtronic reported the acquisition in January for an initial up-front payment of $350 million, plus additional payments of up to $150 million that are contingent on Invatec's meeting of certain milestones. The company also reported that it would acquire ATS Medical (Minneapolis) for $370 million, making it the second largest med-tech deal of 2010. Medtronic will pay $4 per share in cash for each share of ATS Medical stock. The acquisition of this company, which is best known for its heart valves and cryoblation technology, includes the assumption of $20 million of debt. ATS will become part of the Medtronic structural heart business. Its two locations, one in Minnesota and the other in Orange County, California, will be maintained for now.

• Merit Medical Systems (South Jordan, Utah) has signed a definitive merger agreement to acquire BioSphere Medical (Rockville, Maryland) in an all cash transaction valued at approximately $96 million, inclusive of all common equity and Series A Preferred preferences. The merger agreement provides for a cash payment of about $4.38 a share for each outstanding share of BioSphere common stock. BioSphere makes embolotherapeutic products for the treatment of uterine fibroids, hypervascularized tumors, and arteriovenous malformations. Embolotherapy procedures are primarily performed by interventional radiologists and use bioengineered microspheres to create targeted vascular occlusion and drug delivery.

• Heart device maker Thoratec (Pleasanton, California) has agreed to sell its International Technidyne Corporation (ITC; Piscataway, New Jersey) division to Danaher (Washington) for $110 million in cash, plus about $26 million in earn-out payments. The terms call for an initial payment to Thoratec of $110 million in cash upon closing, which is expected in 2Q10, plus an earn-out based on annual gross profit levels achieved by the division's Alternate Site business. Thoratec estimates that the earn-out would total $26 million and be paid over three years, beginning in 2010.

• Universal Health Service (UHS; King of Prussia, Pennsylvania) reported reaching a definitive agreement with Psychiatric Solutions (PSI; Franklin, Tennessee) to acquire PSI for a price of $33.75 per share in cash, or nearly $2 billion. Including the assumption of nearly $1 . 1 billion in PSI net debt, the total transaction consideration is nearly $3 . 1 billion. UHS said its acquisition of PSI is a highly strategic transaction that brings together two complementary companies to create a premier facilities-based healthcare provider with an industry-leading presence in the behavioral healthcare services sector. PSI is the largest standalone operator of owned or leased freestanding psychiatric inpatient facilities with 94 facilities in 32 states, Puerto Rico, and the U.S. Virgin Islands.

• Vascular Solutions (Minneapolis) reported that it has acquired the assets related to the SmartNeedle and pdACCESS Doppler guided needle access business from Escalon Vascular Access a division of Escalon Medical (New Berlin, Wisconsin). The acquisition price of $5.75 million consists of $5 million paid in cash at closing and $750,000 payable in cash upon successful completion of the transfer of the manufacturing processes. In addition to the SmartNeedle and pdACCESS products, Vascular Solutions has acquired the assets related to the new VascuView TAP visual ultrasound system and will pay Escalon a one-time cash earn-out payment in an amount equal to 25% of the net sales of the VascuView TAP products sold between July 1, 2010 and June 30, 2011.

• Virtual Radiologic (vRad; Eden Prairie, Minnesota), a national radiology practice in the development of radiologist workflow technology, and Providence Equity Partners (Providence, Rhode Island), a private equity firm that manages more than $22 billion in equity capital, reported that they have entered into a definitive agreement under which Providence will acquire all of the outstanding common stock of vRad for $17.25 per share in cash. The offer price represents a premium of 41.7% over the 30-day average closing stock price of $12.18 as of May 14, 2010, and a premium of 54.9% over the three month average closing stock price of $11.13. Based on the per share consideration, the transaction is valued at nearly $294 million. The transaction is expected to be completed in 3Q10, subject to customary closing conditions, and regulatory and shareholder approvals. Upon completion, vRad will become a private company, wholly owned by Providence.