Opus Medical Inc

ArthroCare Corp., a maker of devices used in arthroscopic surgery, said Tuesday that it had agreed to buy privately held Opus Medical Inc. for $130 million in cash and stock to gain technology used to repair shoulder damage. Opus shareholders will receive $30 million in cash and $60 million in ArthroCare stock at the close of the deal, expected at year-end. Opus' current owners also will receive $40 million next year and a contingent payment based on Opus' 2005 sales, Sunnyvale, Calif.

ArthroCare Corp., a maker of devices used in arthroscopic surgery, said Tuesday that it had agreed to buy privately held Opus Medical Inc. for $130 million in cash and stock to gain technology used to repair shoulder damage. Opus shareholders will receive $30 million in cash and $60 million in ArthroCare stock at the close of the deal, expected at year-end. Opus' current owners also will receive $40 million next year and a contingent payment based on Opus' 2005 sales, Sunnyvale, Calif.

Orange County biotechnology and medical devices companies, traditionally two of the area's biggest stars, appear to have lost some of their luster with venture capitalists. Local biotech upstarts attracted less than $3 million, or 3.7%, of the $81.4 million investors poured into Orange County in the first three months this year. Medical devices garnered about $3.5 million, or 4.3%, according to a report by PricewaterhouseCoopers.