SonoSite Acquires Patient Monitoring Company CardioDynamics
June 10, 2009 – CardioDynamics yesterday said it entered into a definitive merger agreement whereby SonoSite will acquire the company in exchange for $1.35 per share in cash.
SonoSite is known for its small, lightweight, hand-carried ultrasound systems. CardioDynamics is known for its BioZ Impedance Cardiography (ICG) technology. As blood enters and leaves the aorta with each heartbeat, changes in impedance are processed by ICG to measure and calculate hemodynamic parameters.
The price paid represents a 69 percent premium over the closing share price on June 8. The aggregate transaction value will be approximately $12.3 million, including assumption of approximately $2.3 million of net debt. The boards of directors for both companies have approved the merger agreement. The transaction is subject to customary regulatory approvals and approval by the shareholders of CardioDynamics and is expected to close in the third quarter of calendar 2009. Approval by the shareholders of SonoSite is not required.
During the fiscal year ended Nov. 30, 2008, CardioDynamics generated revenues of $24.5 million and SonoSite generated revenues of $243.5 million for its fiscal year ending Dec. 31, 2008.
“The acquisition of CardioDynamics is part of a strategic initiative that moves SonoSite forward toward our long-stated goal of adding clinical value and reducing healthcare system costs in cardiovascular disease management,” said Kevin M. Goodwin, SonoSite’s president and CEO. “CardioDynamics is the platform we will build upon to achieve this goal. Additionally, CardioDynamics has established a solid direct sales channel in the U.S. with 38 sales representatives calling on cardiologists, internal medicine and family medicine practitioners, primarily in physician office settings.”
For more information: www.cdic.com, www.sonosite.com