Siemens Pacesetter Inc., the Sylmar-based producer of cardiac pacemakers and other medical equipment, will be purchased for about $500 million by St. Jude Medical Inc., the world's leading maker of heart valves, the companies announced Tuesday.
The deal will place St. Jude, based in St. Paul, Minn., in the top tier of pacing-device makers and will put both companies in a better position to compete in the rapidly changing health care industry, St. Jude Chief Executive Ronald A. Matricaria said.
"You really have to be a market leader, have low-cost manufacturing and manufacture the highest-quality products that deliver clinical value," Matricaria said. "If you're a company that has that kind of profile, you're going to succeed."
The deal is also a significant diversification for St. Jude, which last year took in 95% of its revenue from one product. The company, with about 700 employees, earned $110 million on sales of $253 million in 1993. Siemens has about 1,300 employees worldwide and reported sales of $350 million in 1993.
