Agfa-Gevaert (Mortsel, Belgium) said early last month that it had completed its $132.5 million (EUR 106.5 million) acquisition of U.S. cardiology imaging and information networks manufacturer Heartlab (Westerly, Rhode Island). Heartlab's Encompass networks are installed in more than 250 U.S. cardiovascular care centers. Agfa and Heartlab have been collaborating since December 2003 as part of a distribution agreement for the Belgian company's Impax for Cardiology solution, which allows integration of radiology and cardiology, which Agfa described as "the two most image-intensive departments within hospitals." Agfa said it expects the deal to be accretive in the first year.
Cardiac Science (Irvine, California) and Quinton Cardiology Systems (Bothell, Washington) received notification of the termination of the Hart-Scott-Rodino waiting period from the Federal Trade Commission for their proposed merger. Quinton manufactures electrocardiographs, cardiac stress test systems, Holter monitors, cardiac rehabilitation telemetry systems and cardiology data management systems used in the diagnosis, monitoring and management of patients with cardiovascular disease. It markets its products under the Quinton and Burdick brand names. Cardiac Science, which manufactures the Powerheart-brand automatic public-access defibrillators and the Powerheart CRM, said it still anticipates completing the deal in 3Q05.
CardioTech International (Wilmington, Massachusetts) reported that it had terminated its agreement to acquire private medical device contract manufacturer CarTika Medical (Plymouth, Minnesota) because of the protracted time involved in obtaining regulatory approval for the deal that was first disclosed last November. The deal was slated for completion in the first quarter of fiscal 2006. CardioTech focuses on making devices to surgically treat cardiovascular disease. The company is currently conducting human clinical trials with the CardioPass and is also working to develop a drug-eluting stent.
McKesson (San Francisco) reported signing an agreement to acquire Medcon (Tel Aviv) for $3.05 a share, or a total value of about $105 million. Medcon is a provider of web-based cardiac image and information management addressing the spectrum of needs for heart centers, including diagnostic digital image management and archiving, procedure reporting and workflow management. McKesson said that the addition of Medcon would further strengthen its leadership in enterprise imaging, which includes integrated solutions for medical specialties such as cardiology, gastroenterology, ophthalmology and radiology. Uzi Blumensohn, Medcon chairman and CEO, and all other personnel associated with sales, installation, development and support, will become part of McKesson Provider Technologies.
Mercury Computer Systems (Chelmsford, Massachusetts) reported it has agreed to purchase Sohard (Ferth, Germany) for roughly EUR 19 million ($23.22 million). Sohard develops software solutions for medical imaging systems, hardware and firmware for commercial embedded systems and software intelligence applications via professional services. The acquisition is expected to close in 3Q05. Sohard produces a web-based image distribution picture archiving and communications systems (PACS) solution enabling users to transfer, visualize and edit medical image data throughout the hospital. Its systems are used in medical diagnostic imaging devices including MRI, PET and digital X-ray, as well as in semiconductor imaging applications.
Roper Industries (Duluth, Georgia) reportedacquiring medical products provider Civco Medical Instruments (Kalona, Iowa), from KRG Capital Partners for $120 million in cash. Civco supplies diagnostic and therapeutic disposable products used in conjunction with ultrasound imaging for minimally invasive procedures primarily in cardiology, radiology and urology. Civco recently introduced the Civco Assist product line, a surgical patient platform used across several imaging modalities. Civco joins Roper's Imaging segment, with Roper saying that this enhances its focus on life science and medical applications. Civco's senior management team, under the leadership of Charles Klasson Jr., president, will continue in their positions under Roper's ownership.
WorldHeart (Oakland, California) reported that following a review process by the Securities and Exchange Commission it has filed its definitive proxy statement for its annual and special meeting of shareholders. Once WorldHeart concludes its shareholder meeting on July 18, assuming shareholder approval, the company said it intends to close its roughly $23 million acquisition of MedQuest Products (Salt Lake City), a medical device company, in the final development stages of its HeartQuest ventricular assist device (VAD). HeartQuest is a magnetically levitated centrifugal blood pump which WorldHeart said adds an advanced rotary pump product to its existing VAD platform. In conjunction with the acquisition, the company said it expects to raise up to $23 million in a private placement financing with Maverick Venture Management and the exercise of certain outstanding warrants. A condition of the transaction is that, subject to tender offers, WorldHeart's debenture holders and warrant holders agree to convert their debentures and exercise the warrants issued in September 2004.