A Medical Device Daily

Medtronic (Minneapolis) reported that it has exercised its option to acquire the O-arm imaging system assets of Breakaway Imaging (Littleton, Massachusetts). The acquisition brings the O-arm system into a broad portfolio of image-guided surgical solutions within the Navigation (Louisville, Colorado) business at Medtronic.

The financial terms of the agreement, which is expected to close in June, are not being disclosed.

"The O-arm represents an important step forward in image-guided surgery for Medtronic's customers and their patients," said Jim Cloar, VP and general manager of the Navigation business at Medtronic. "It will be an essential component in expanding the adoption of minimally-invasive spine surgeries and opens the possibility for novel therapies which we believe are the wave of the future."

The O-arm imaging system, with a breakable gantry and flat screen detector, provides multi-dimensional surgical imaging. It provides surgeons with 3-D images, as well as multi-plane 2-D, and fluoroscopic imaging. It is intended for use in orthopedic surgical procedures and is in use in more than 20 locations worldwide. The system received FDA clearance in 2005.

Orthopedics manufacturer Biomet (Warsaw, Indiana) reported that it will begin mailing its definitive proxy materials to shareholders this week for approval for the proposed $10.9 billion acquisition of Biomet by an entity currently controlled by private equity funds sponsored by each of The Blackstone Group, Goldman, Sachs & Co., Kohlberg Kravis Roberts and Texas Pacific Group.

In the deal first disclosed in December (Medical Device Daily, Dec. 20, 2006) Biomet entered into an agreement to be acquired for $44 in cash, without interest, for each common share of Biomet

Biomet has scheduled a special meeting of shareholders for June 8, 2007 to consider and vote on the merger agreement and related transactions. Biomet's shareholders of record as of April 20, 2007 will be entitled to vote at the special meeting.

AFP Imaging (Elmsford, New York) reported that it has successfully completed the acquisition of Quantitative Radiology (QR; Verona, Italy) for an undisclosed sum.

QR is the developer of a 3-D, digital X-ray imaging technology called NewTom, for dentists and other professionals. This is known as Cone Beam CT scanning. NewTom is a specialized X-ray system in conjunction with software that reconstructs the 3-D radiographic images from the captured data.

AFP has been QR's exclusive distributor for North America for the past year.

Industry estimates of the CBCT dental market size, for the next two years, is about $200 million.

At the time of acquisition, QR's installed base, worldwide, was about five hundred units. The purchase was funded through a combination of new equity investors and senior debt.

Sales for AFP's fourth quarter and fiscal year ending June 30, 2007, will include QR's revenues and operating income beginning April 20, 2007.

AFP Imaging is a diagnostic imaging supplier whose products are distributed worldwide with clinical applications for dental, medical and veterinary professionals.

In other dealmaking news: Biosite (San Diego) reported that Beckman Coulter (Fullerton, California) has obtained clearance from the German Federal Cartel Office in connection with its proposed $1.55 billion acquisition of Biosite.

As previously disclosed, a subsidiary of Beckman Coulter has commenced a cash tender offer to acquire all of Biosite's outstanding shares of common stock for $85 per share. Unless the tender offer is extended, it and any withdrawal rights to which Biosite's stockholders may be entitled will expire on April 27.

The deal has already cleared U.S. antitrust hurdles (MDD, April 18, 2007).

Biosite is still exploring a rival bid from Inverness Medical Innovations (Waltham, Massachusetts) that values its shares at $90 apiece, but its board continues to say that it has not publicly endorsed the IMI offer.

Goldman Sachs is acting as financial advisor to Biosite, and Cooley Godward Kronish and Potter Anderson & Corroon are serving as legal advisors.

Biosite is a biomedical company commercializing proteomics discoveries for the advancement of medical diagnosis. The Biosite Triage rapid diagnostic tests are used in more than 70% of U.S. hospitals and in more than 60 international markets, the company said.