Camtronics Medical Systems (Hartland, Wisconsin), a subsidiary of Analogic (Peabody, Massachusetts) and a developer of cardiovascular information management and hemodynamic monitoring, said it would purchase the hemodynamic monitoring product line of Quinton Cardiology Systems (Bothell, Washington) as part of a series of agreements between the two companies. Camtronics will assume responsibility for all new U.S. sales of hemodynamic monitoring products, while Quinton will continue to provide services to its existing customers during a six-month transition period. Quinton also will continue to sell its hemodynamic monitoring product outside the U.S. for six months, after which it plans to distribute Camtronics' hemodynamic system through its international dealer network.
Cardiac Science (Irvine, California), a manufacturer of automated external defibrillators (AEDs), acquired substantially all the assets of Complient (Cleveland, Ohio), a privately-held provider of AED and CPR training and program management. Cardiac Science issued 10.25 million shares of its common stock, subject to certain restrictions. Raymond Cohen, chairman and chief executive officer of Cardiac Science, said the Complient staff would be reduced by one-third, with integration completed by year-end. Cardiac Science first established a relationship with Complient in February 2002 with the signing of a co-marketing agreement. That relationship then was expanded to include a workplace defibrillation program, consisting of AED training, medical direction, customer support and Internet-based software services.
dj Orthopedics (San Diego, California), a manufacturer of products and services for the orthopedic sports medicine market, signed an agreement to purchase the bone growth stimulation (BGS) business of OrthoLogic (Tempe, Arizona) for $93 million in cash. The deal is projected to close before year-end. The BGS products to be acquired include the OL1000, which uses combined magnetic field (CMF) technology to deliver a specific, low-energy signal for the non-invasive treatment of an established nonunion fracture acquired secondary to trauma, excluding vertebrae and all flat bones, and SpinaLogic, a device used as an adjunct to primary lumbar spinal fusion surgery. Both are FDA-approved. With spin-off of the BGS business, OrthoLogic said it would become a "pure play" orthobiologics drug development company focused on commercializing several potential therapeutics comprising its Chrysalin Product Platform. dj Orthopedics said it intends to operate the BGS business as a stand-alone division at its existing location in Tempe. Shane Kelly, senior vice president, sales, for OrthoLogic, will become vice president and general manager of the new division.
Eastman Kodak (Rochester, New York) completed its acquisition of PracticeWorks (Atlanta, Georgia), a provider of dental practice management software. Kodak also acquired PracticeWorks subsidiary Trophy Radiologie (Paris), a provider of dental digital radiographic imaging systems. Kodak paid $468 million for PracticeWorks and assumed debt of about $18 million. Holders of PracticeWorks common stock will receive $21.50 for each share, while holders of PracticeWorks Series B preferred stock will receive $7.33 for each share. Both PracticeWorks and Trophy Radiologie join Kodak as separate subsidiaries to maintain focus on their individual businesses. The two companies and their product portfolios are now part of the Dental Systems Strategic Product Group in Kodak's Health Imaging Group.
Medamicus (Plymouth, Minnesota) shareholders approved the acquisition of Biomec (Minneapolis, Minnesota), a deal valued at $18 million. Medamicus issued 933,333 shares of common stock, paid about $10 million in cash and assumed $1 million of liabilities. In mid-October, the company closed a borrowing arrangement with M&I Bank for a $5 million term loan and a $3 million line of credit. Medamicus manufactures percutaneous delivery systems, including venous vessel introducers, safety needles and other disposable delivery products for use in the implantation of pacemakers, defibrillators, catheters and infusion ports sold through OEM relationships with other medical device companies. Biomec makes implantable stimulation leads, lead delivery systems and lead accessories for cardiac rhythm management, neuromodulation and hearing-restoration markets.
Varian Medical Systems (Palo Alto, California) agreed to acquire Zmed (Ashland, Massachusetts), a privately held supplier of radiation oncology software and accessories for ultrasound-based, image-guided radiotherapy, stereotactic radiation treatments and image management. Varian will pay about $35.5 million in cash for the business, subject to certain adjustments. The acquisition includes Zmed's line of servers and software for storing, accessing, transferring and reviewing patients' diagnostic images via local networks and the Internet. Zmed, with about 30 employees, will be a part of Varian's Oncology Systems business segment and continue to operate from its base near Boston. The transaction was slated to close by mid-November and is not subject to any pre-closing regulatory filings. Varian Medical Systems is a manufacturer of integrated radiotherapy systems for cancer treatment as well as X-ray tubes and flat-panel sensors for imaging in medical, scientific, and industrial applications.