EV3, Foxhollow to Merge Endovascular Device Businesses
July 22, 2007 – ev3 Inc. and FoxHollow Technologies, Inc. announced a definitive agreement by which ev3 and FoxHollow will merge in a $780 million cash and stock transaction to create a new company with a market capitalization of approximately $1.7 billion to become a global leader in endovascular devices with net sales in 2008 projected to be in the range of $585 to $615 million.
ev3 and FoxHollow’s combined scale will create an organization that possesses one of the largest U.S. distribution footprints in endovascular devices with combined technologies for the advancement of the treatment of peripheral and neurovascular disease. Upon completion of the transaction, the company’s combined product portfolio will include a broad spectrum of products to treat vascular disease in both the peripheral and neurovascular markets, including atherectomy and thrombectomy, PTA balloons, stents, embolic protection devices, infusion catheters/wires, embolic coils and liquid embolics.
Under the terms of the merger agreement, FoxHollow stockholders will receive 1.45 shares of ev3 common stock plus $2.75 in cash for each share of FoxHollow common stock they own. Based on the companies’ closing stock prices on July 20, 2007, this represents $25.92 per share of consideration to be received by FoxHollow stockholders, or a total consideration of approximately $780 million, and a premium of over 20 percent to the 30-day average trading price for FoxHollow’s shares. Upon completion of the transaction, FoxHollow stockholders would own approximately 41 percent of the combined company, and ev3 stockholders would own approximately 59 percent.
For more information: www.ev3.net and www.foxhollowtech.com