A Medical Device Daily

Volcano (San Diego) said it has completed its $25 million acquisition of CardioSpectra (San Antonio). The deal was first disclosed earlier this month.

Volcano paid $25 million in cash at closing to CardioSpectra's shareholders and warrant holders. In addition, Volcano may make additional payments upon the achievement of certain product development, regulatory and revenue milestones. Any future payment may be made in cash or stock, or a combination of both at Volcano's discretion, the company said.

CardioSpectra is a private company developing optical coherence tomography (OCT) technology. Volcano said that CardioSpectra's IOCT imaging system is expected to complement its own existing product offerings and further enhance Volcano's position in the field of interventional medicine.

Volcano provides intravascular ultrasound (IVUS) and functional measurement (FM) products designed to enhance the diagnosis and treatment of vascular and structural heart disease.

In other dealmaking activity:

  • Ambulatory Services of America (ASA; Brentwood, Tennessee) said it has acquired the assets of Innovative Dialysis Systems (IDS; Long Beach, California) and interests in joint ventures that own and operate 35 dialysis programs in California, Ohio, Oregon, Wyoming and Guam. Financial terms were not disclosed. IDS, owned by Allen Fulmer and Jerry Green, has provided management services to the acquired dialysis programs prior to the transactions. In addition to the 35 programs in which ASA has acquired an interest, it will manage two other dialysis facilities that were previously managed by IDS. MedCare Investment Fund III is ASA's lead financial sponsor and is providing substantial equity financing for the transaction, the company noted. GE Healthcare Financial Services acted as lead arranger for the debt financing for the deal. IDS develops and manages dialysis programs. ASA provides alternative site services in partnership with physicians. The company, through its subsidiaries Renal Services of America, Radiation Oncology Services of America and Cardiovascular Services of America, owns facilities providing dialysis services, radiation oncology services and outpatient cardiac catheterization and CT angiography services.
  • PerkinElmer (Waltham, Massachusetts) reported signing a definitive agreement with Pediatrix Medical Group (Fort Lauderdale, Florida) to acquire the newborn metabolic screening business of Pediatrix in a cash transaction. Financial terms of the deal were not disclosed. However, the company said that the acquisition is not expected to have any material effect on PerkinElmer's adjusted earnings per share in 2008 and will be slightly accretive in 2009. PerkinElmer will acquire Pediatrix's metabolic screening laboratory and its StepOne newborn screening product that is capable of analyzing more than 50 inherited disorders in newborns, according to the company. Pediatrix's screening laboratory provides neonatal screening and consultative services to hospitals, medical groups, and the states of Maryland, Mississippi, Louisiana, Nebraska and Pennsylvania, as well as the District of Columbia.