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Europe's Jomed Plans to Buy EndoSonics

August 07, 2000|From Reuters

NEW YORK — Jomed, one of Europe's top medical devices maker, on Sunday agreed to acquire Rancho Cordova-based EndoSonics Corp. for about $205 million in a move to help the Swiss firm penetrate the U.S. market more effectively.

The companies said in a joint release that Jomed will pay $11 per share for the outstanding stock of EndoSonics. About $150 million of the purchase price will be funded through an offering of new Jomed shares, and the balance of the purchase price will come from Jomed's existing cash.

Shares of EndoSonics, which makes arterial ultrasound systems, closed Friday at $7.19, up 19 cents, on Nasdaq, below a year high of $9.38 and above a 52-week low of $3.

EndoSonics reported a second-quarter loss of $1.8 million, or 10 cents per share, for the period ended June 30. That compared with net income of $1.8 million, or 10 cents, in the year-earlier quarter. Revenue fell to $13.1 million from $13.9 million in the quarter. It had sales of $48 million in 1999.

After the combination, the enlarged Jomed, which makes devices to open blood vessels during surgery, will have a head count of nearly 1,000 and sales of more than $99 million.

"EndoSonics products represent an excellent complement to Jomed's product range globally," Jomed President and Chief Executive Tor Peters said in a statement.

"In addition to the synergy in our existing international sales and manufacturing organizations, we will also gain access to an established U.S. sales force, helping us to penetrate the large U.S. market faster and more effectively than would otherwise be the case," he said.

Amthauptstrasse, Switzerland-based Jomed recently agreed to acquire U.S.-based catheter maker MediDyne Inc. for an undisclosed amount.

The EndoSonics transaction, subject to regulatory approval among other hurdles, has been approved by the boards of both companies.

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